Visa, a Global payments leader, has announced a strategic partnership with Aquanow, a worldwide digital assets company, to introduce stablecoin settlement capabilities across the Central and Eastern Europe, Middle East, and Africa (CEMEA) regions.
By integrating Aquanow’s digital assets infrastructure with Visa’s established technology stack, the partnership allows financial institutions to utilize blockchain technology for fund transfers, providing a digital alternative to legacy fiat wire transfers. This innovation also introduces 365-day settlement capabilities.
This collaboration marks a significant move away from exclusive reliance on traditional banking channels, and it will enable Visa’s network of issuers and acquirers in the CEMEA area to settle transaction obligations using stablecoins, specifically USD Coin (USDC).
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Following a successful pilot of USDC settlements in 2023, Visa is now expanding the service to the CEMEA region, driven by the rapidly growing demand from financial institutions for quicker and more cost-effective cross-border transactions.
“By harnessing the power of stablecoins and pairing them with our trusted global technology, we are enabling financial institutions in CEMEA to experience faster and simpler settlements,” said Godfrey Sullivan, Visa’s head of product and solutions for CEMEA.
While card swipes seem instantaneous, the actual movement of funds between banks can often take several days due to the involvement of legacy correspondent banking networks, and the new solution with Aquanow streamlines this process by converting fiat currency to stablecoins, cutting out layers of intermediaries, reducing costs, and significantly shortening settlement times.
Visa reports that its stablecoin rails have already processed over $2.5 billion in annualized settlement volume, cementing stablecoins as an essential piece of financial infrastructure.
“Visa’s reliable global network has long moved money securely and efficiently. Together, Visa and Aquanow are unlocking new ways for institutions to participate in the digital economy,” Phil Sham, CEO of Aquanow, stated.
