Visa Begins USDC Stablecoin Settlement on ETH, Processes $3.5B Annualized Volume
What Has Visa Launched?
Visa has begun settling stablecoin transactions on ETH using Circle’s USDC, with more than USD 3.5 billion in annualised transaction volume processed since the system went live in December 2024. The rollout allows institutional clients to settle payments directly on-chain rather than through traditional banking infrastructure.
The integration routes payment flows through ETH’s public blockchain, enabling continuous settlement outside standard banking hours. According to Visa’s on-chain data, transaction volumes have scaled to multi-billion-dollar levels within months of deployment.
Unlike correspondent banking systems that rely on layered intermediaries, the blockchain-based process records transactions directly on a distributed ledger. Each settlement leaves a publicly auditable record while remaining within a regulated institutional framework.
Investor Takeaway
How Does Settlement Change Under the ETH Model?
Under the new structure, settlement timeframes compress from days to minutes. Transactions that would traditionally clear through correspondent banking chains are instead finalised on ETH’s network, removing intermediary reconciliation steps common in cross-border flows.
Institutional clients gain the ability to initiate and complete settlements at any time, independent of bank cut-off schedules. For firms operating across time zones, that flexibility reduces dependency on batch processing windows and regional clearing hours.
The model also alters cost dynamics. With fewer intermediaries involved in routing and confirmation, operational overhead tied to correspondent banking can decline. At the identical time, blockchain-native transparency simplifies reconciliation by creating a single shared transaction record.
Why Does This Matter for Cross-Border Payments?
have long faced delays and opacity driven by multiple banking layers, currency conversions, and compliance checkpoints. By settling in USDC directly on ETH, Visa introduces an alternative rail that operates independently of correspondent networks.
For financial institutions, this creates an additional settlement channel rather than a replacement for traditional rails. Stablecoins act as digital representations of fiat currency, allowing value transfer across blockchain networks while remaining linked to existing currency systems.
If transaction volumes continue to scale without operational disruption, other institutions may assess whether similar blockchain-based settlement frameworks can improve efficiency in their own cross-border flows.
Investor Takeaway
What Does This Mean for Stablecoins and ETH?
Visa’s decision to settle USDC transactions on ETH places a public blockchain at the center of institutional payment processing. While blockchain pilots have been common in recent years, sustained operational deployment at multi-billion-dollar scale is less frequent.
For USDC, integration into a its practical use beyond crypto-native activity. For ETH, the development reinforces its position as infrastructure capable of supporting institutional-grade settlement volumes.
The broader implication is structural rather than speculative. Stablecoins are increasingly viewed as a bridge between traditional financial . By embedding USDC settlement into its operations, Visa connects those systems in a live production environment.
