Visa (V.US) partners with Circle (CRCL.US) to provide stablecoin settlement for Bank of America Corp.

On Tuesday local time, Visa (V.US) announced that it will allow Bank of America Corp and financial technology companies to settle transactions with the company using Circle Internet Group's USDC (USDC-USD) stablecoin. This move further integrates blockchain and stablecoins into the traditional financial system in the backdrop of increasing regulatory support for cryptocurrencies. The initial participating banks include Cross River Bank and Lead Bank, which have already begun settling with Visa using USDC through the Solana blockchain. Visa plans to expand this service to more institutions in the United States by 2026. Visa is also a design partner for Arc, a new layer of blockchain being developed by Circle, which is currently in the public testnet phase. Once Arc is officially launched, Visa will use Arc for USDC settlements within the network and operate a validation node. At the close on Tuesday, Circle's stock price rose nearly 10%. As this payment network giant launches new services, the scale of its stablecoin settlements is rapidly growing. As of November 30, 2025, the annualized turnover has reached $3.5 billion. However, compared to the total payment volume of $72.6 trillion in the 12 months ending September 30, 2025, this is still just a fraction. Rubail Birwadker, Global Head of Growth Products and Strategic Partnerships at Visa, said: "Financial Institutions, Inc. want a faster, programmable settlement method that seamlessly integrates with existing fund operations. By introducing USDC settlements in the United States, Visa offers a reliable, bank-oriented capability that enhances fund operations efficiency while maintaining the security, compliance, and resilience our network demands." With the launch of USDC settlements, Visa's consulting and analytics department has introduced "Stablecoin Consulting Services" to provide insights and recommendations on market fit, strategy, and implementation for banks, fintech companies, merchants, and businesses. Visa and its competitor Mastercard (MA.US) have been exploring stablecoin applications, hoping to leverage this technology to enhance payment efficiency rather than be disrupted by the technology originally designed for decentralized finance. Last month, Visa launched a pilot program allowing businesses to pay creators and gig workers directly with stablecoins; in September, they launched a pilot program for cross-border payments with stablecoin pre-loading through Visa Direct, allowing businesses to provide funds for transactions in stablecoins rather than fiat currency. Over four years ago, Visa began allowing settlements using Circle's USDC (USDC-USD) and expanded stablecoin settlement capabilities to the Solana blockchain by 2023. In November, cross-border payment technology company Ripple partnered with Mastercard and Gemini Space Station (GEMI.US) to pilot stablecoin settlements on XRPL; in October, it was reported that Mastercard is in deep negotiations to acquire the cryptocurrency and stablecoin infrastructure company Zero Hash.