Visa just made cross-border payments faster and cheaper for millions of people across Central and Eastern Europe, the Middle East, and Africa. The payments giant now lets banks settle transactions in digital dollars, rather than waiting days for traditional bank transfers.
The company partnered with Aquanow, a crypto infrastructure firm, to bring USD Coin (USDC) settlements to the CEMEA region. Banks can now skip the usual maze of correspondent banking and settle payments in minutes, not days.
Visa’s Digital Dollar Experiment Pays Off
Visa first tested stablecoin settlements in 2023. The pilot program worked so well that monthly volumes now hit $2.5 billion annually. That success convinced Visa to expand beyond its initial markets.
“Financial institutions in CEMEA can now experience faster and simpler settlements,” said Godfrey Sullivan, Visa’s head of product and solutions for the region. The new system cuts out multiple middlemen that slow down international payments.
Banks using Visa’s network can now settle obligations with approved stablecoins like USDC. This removes the need to wait for traditional bank clearing systems that can take several business days.
How Stablecoin Settlements Change Banking Operations
Traditional cross-border payments bounce between multiple banks before reaching their destination. Each hop adds time, fees, and complexity. Stablecoins eliminate most of these steps.
When a bank in Poland sends money to a bank in Kenya, the transaction now settles on blockchain rails instead of correspondent banking networks. The process takes minutes instead of days and works 365 days a year, including weekends and holidays.
Aquanow provides the technical infrastructure that connects Visa’s payment network to blockchain systems. The Toronto-based company handles billions of dollars in crypto transactions monthly and employs over 170 people globally.
Stablecoin Market Grows Faster Than Expected
Stablecoins processed $5.5 trillion globally in 2024, up from $3.5 trillion in 2023. These digital dollars now rival traditional payment networks in transaction volume.
Monthly stablecoin volumes reached $450 billion in 2024 – roughly half of Visa’s $1 trillion monthly processing volume. The gap continues to narrow as more financial institutions adopt digital settlement methods.
Phil Sham, Aquanow’s CEO, sees this as institutions joining the digital economy. “Visa and Aquanow are unlocking new ways for institutions to participate in the digital economy, using stablecoin technology to settle with internet speed and transparency.”
Regional Banking Benefits From Blockchain Rails
The CEMEA region faces unique challenges with cross-border payments. Many countries deal with currency volatility, limited banking infrastructure, and high remittance costs.
Stablecoin settlements address these pain points directly. Recipients can receive USD-backed payments without needing traditional banking relationships. The system works even in regions where correspondent banking is expensive or unavailable.
Visa recently launched a pilot program called Visa Direct that lets businesses send stablecoin payouts directly to digital wallets. Companies fund these payouts with regular money, but recipients get the option to receive stablecoins instead.
Banks Move Beyond Traditional Settlement Systems
Aquanow earned recognition on Deloitte’s Technology Fast 500 list for two consecutive years, achieving 3,022% revenue growth over four years. The company now serves over 300 institutional clients, including banks, neobanks, and payment companies.
The partnership reduces Visa’s reliance on traditional systems with multiple intermediaries. Banks get faster settlements while maintaining the security and reliability they expect from Visa’s network.
This expansion follows growing demand from financial institutions for more efficient cross-border payment options. Traditional correspondent banking often involves multiple intermediary banks, each adding costs and delays to international transfers.
Future of Digital Payment Infrastructure
Visa’s stablecoin expansion signals changes in payment infrastructure. Major financial institutions now view blockchain-based settlements as practical alternatives to legacy systems.
The company continues investing in digital asset capabilities while maintaining its traditional payment network. This dual approach lets banks choose the settlement method that works best for each transaction.
Stablecoin volumes continue growing as more institutions discover the benefits of 24/7 settlement capabilities. The technology particularly appeals to banks serving regions with limited traditional banking infrastructure or high cross-border payment costs.
