Visa has started using Ethereum and USDC to settle stablecoin transactions, with an annualized volume exceeding USD 3.5 billion.

In line with this development, Visa, the American payments network, incorporated blockchain settlement capabilities via Ethereum in December 2024. This integration signifies a shift for traditional financial infrastructure in handling digital asset transactions.

Since its deployment, the system has processed over USD 3.5 billion in annualized transaction volume.

Evolution of Settlement Infrastructure and Operational Adjustments

Visa’s official press release indicates that through routing payments on Ethereum’s public blockchain, the company has shortened settlement timeframes from multiple days to just minutes. Each transaction is recorded on the distributed ledger, creating a transparent and verifiable record that remains publicly accessible.

This process eliminates intermediary steps usually required in cross-border and institutional payment processes, thereby lowering operational costs and enhancing transparency for compliance and reconciliation purposes.

Institutional clients are now able to execute transactions outside of standard banking hours, providing greater flexibility. This infrastructure change addresses long-standing inefficiencies in international payments where delays and lack of transparency have historically been issues.

Implications for Payment Infrastructure

Visa’s deployment on Ethereum exemplifies the practical application of blockchain technology within regulated financial services. It shows that distributed ledger systems can support high-volume institutional payments while maintaining operational reliability.

The use of a public blockchain for payment settlements by a major network operator may set a precedent for other financial institutions considering similar upgrades. If blockchain-based settlement proves consistently effective at scale, it could lead to broader adoption across the payments industry.

Additionally, this move highlights growing institutional interest in stablecoins as intermediaries between traditional currency systems and blockchain networks. By facilitating USDC settlements, Visa positions Ethereum as a potential payment channel alongside existing networks.

For cross-border payment providers and financial institutions, the question of whether blockchain settlement offers competitive benefits over established correspondent banking arrangements remains pertinent. If adopted widely, this model could reshape how international transactions are structured and conducted within the financial sector.