The global payments company VISA has reportedly announced that its stablecoin settlement services are now available on the Solana blockchain.
Although still in its early stages, this effort intends to enhance the features of existing payment systems by replacing them with modern equivalents.
Announcing the pilot initiative, Solana’s blockchain capabilities were said to provide “enterprise-grade” throughput and minimal transaction costs. To do this, VISA purchased the merchant services companies Worldpay and Nuvei.
The payment giant has reportedly cleared millions of dollars on blockchain networks using stablecoin USDC, according to the release. Cuy Sheffield, VISA’s Head of Crypto, has made the following comments on this significant advancement and the potential of this technology to “improve” existing payment systems.
With the support of stablecoins like USDC and global blockchain networks like Solana and Ethereum, Visa is able to speed up international payments and provide its customers a more convenient way to move money across the world. Visa is dedicated to pioneering innovative approaches to money transfer by using cutting-edge technology like digital currencies and blockchains.
The payment company’s interest in blockchain technology prompted the launch of a pilot in 2021 to settle payments using the stablecoin USDC. To facilitate international trade between Australia and other countries using the Ethereum blockchain, the firm teamed up with cryptocurrency exchange Crypto.com.
According to the press release, “speeding up settlement times for their merchants,” lowering expenses, increasing throughput, and decentralizing the program would all result from the purchase of Worldpay and Nuvei.
Thanks to this collaboration, VISA was able to initiate live settlement payments on the Solana blockchain before any other legacy company. The payment firm says it is open to forming partnerships and alliances in the future to help it grow.
President of Worldpay Merchant Solutions Jim Johnson said further: Worldpay is able to bring more of our treasury operations in-house and provide our merchants with additional options for receiving cash as a result of Visa’s USDC settlement capabilities. To adapt to the demands of worldwide merchants in today’s dynamic retail environment, it is essential to broaden financing channels and increase monetary leeway.
According to information provided by Token Terminal, Solana has been severely damaged by the “Crypto Winter.” The blockchain’s native token, SOL, has dropped by 16% over the previous 30 days, while its circulating market value has dropped by 12% and 30-day income has dropped by 4%.
Despite a drop in active users (from 200,000 to roughly 100,000), the blockchain has maintained a 20% rise in annualized income and annualized fees, and the overall trends point to the positive on both measures.
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