Visa has expanded its stablecoin settlement program to U.S. banks using USDC on Solana, while the FDIC approved a proposal under the GENIUS Act allowing banks to issue payment stablecoins through subsidiaries. These developments signal accelerated stablecoin adoption in the U.S. financial system, enabling faster, round-the-clock transactions and regulatory clarity.
Visa’s USDC settlement expansion integrates stablecoins into traditional banking for seamless, onchain finality outside business hours.
FDIC’s GENIUS Act proposal outlines governance, reserves, and oversight for banks issuing stablecoins via subsidiaries.
Stablecoin market projected to exceed $200 billion by 2026, per BlackRock’s outlook, driven by institutional inflows.
Discover how Visa and FDIC announcements boost stablecoin adoption in the US, paving the way for mainstream integration. Explore implications for payments and banking today.
What is Driving Stablecoin Adoption in the US?
Stablecoin adoption in the US is surging due to recent initiatives from major financial players like Visa and regulatory bodies such as the FDIC. Visa’s expansion of its USDC settlement program allows U.S. banks to settle transactions using Circle’s USDC on the Solana blockchain, providing instant finality and availability beyond traditional banking hours. Simultaneously, the FDIC’s approval of the GENIUS Act proposal establishes a clear framework for supervised banks to issue their own payment stablecoins, ensuring robust reserves and compliance.
How Does Visa’s Stablecoin Settlement Work?
Visa’s stablecoin settlement leverages USDC on Solana to enable participating U.S. banks and payment firms to move funds efficiently. This integration connects directly to Visa’s treasury and reconciliation systems, reducing settlement times from days to near-instantaneous. According to Visa’s Global Head of Growth Products and Strategic Partnerships, Rubail Birwadker, “Visa is expanding stablecoin settlement because our banking partners are not only asking about it—they’re preparing to use it.” Previously tested internationally, this U.S. rollout supports 24/7 operations, with transactions achieving onchain finality. Gilles Gade, founder, president, and CEO of Cross River Bank, noted, “Fintech and crypto innovators increasingly ask us to bring stablecoins into their existing product suite.” Data from Circle indicates USDC’s circulating supply exceeds $30 billion, underscoring its growing role in payments. This move aligns with broader trends, as stablecoins processed over $7 trillion in transactions last year, per Chainalysis reports, positioning them as vital infrastructure for global finance.
Frequently Asked Questions
What Are the Requirements for Banks Issuing Stablecoins Under the GENIUS Act?
The GENIUS Act, as outlined in the FDIC’s approved proposal, requires FDIC-supervised banks to issue payment stablecoins through dedicated subsidiaries. These must maintain high-quality liquid reserves fully backing the stablecoins, adhere to strict governance standards, and implement comprehensive risk management and compliance frameworks. Ongoing supervisory oversight ensures stability, with applications reviewed for liquidity and operational integrity, fostering safe innovation in digital payments.
Why Is Stablecoin Settlement on Solana Significant for US Banks?
Stablecoin settlement on Solana offers US banks high-speed, low-cost transactions with proven scalability, handling thousands of operations per second. This enables round-the-clock settlements outside traditional hours, integrating seamlessly with existing systems for efficiency. As Jeremy Allaire, CEO of Circle, highlighted in a public statement, it marks a milestone in USDC’s mainstream acceptance, allowing banks, fintechs, and crypto firms to settle directly with Visa, enhancing liquidity and reducing costs in the payments ecosystem.
Key Takeaways
- Accelerated Integration: Visa’s USDC on Solana expansion bridges traditional finance and blockchain, enabling instant settlements for U.S. institutions.
- Regulatory Framework: FDIC’s GENIUS Act proposal provides clear guidelines, boosting confidence for banks to issue stablecoins with proper reserves and oversight.
- Future Growth: These steps align with BlackRock’s prediction of stablecoins as a 2026 economic force, urging institutions to explore adoption for competitive advantages.
Conclusion
In summary, Visa’s stablecoin settlement expansion and the FDIC’s GENIUS Act proposal are pivotal for stablecoin adoption in the US, integrating digital assets into core banking operations with enhanced speed and security. These developments, supported by expert insights from industry leaders like Rubail Birwadker and Gilles Gade, demonstrate growing institutional trust. As stablecoins evolve from niche tools to essential payments infrastructure, financial entities should monitor regulatory updates and prepare for broader implementation to stay ahead in the transforming landscape.
Today’s announcements coincide with a stable crypto market, where Bitcoin holds at $87,000 amid minor fluctuations, and Ethereum trades at $2,930. Other highlights include the SEC closing its investigation into AAVE without enforcement, Bitwise forecasting new Bitcoin highs in 2026 due to institutional inflows, and Trump expressing openness to bipartisan SEC nominations to advance crypto legislation. In the stablecoin space, BNB announced an upcoming liquidity-unifying stablecoin, while RedotPay raised $107 million to expand its platform. Tether co-led an $8 million investment in Speed for Lightning-based stablecoin payments. Memecoins showed mixed performance, with Fartcoin up 4%, and NFT collections like Pudgy Penguins securing a $500,000 Las Vegas Sphere ad placement. Cantor Fitzgerald’s report on Hyperliquid projects a $250 billion market cap over 10 years, highlighting long-term potential. Rainbow Wallet’s token generation event is set for February 5, 2026, with an airdrop. These events underscore a maturing crypto ecosystem, with stablecoins at the forefront of mainstream integration.
Bitcoin ETFs faced $635 million in net outflows this week, alongside $449 million for Ethereum ETFs. KindlyMD received a Nasdaq delisting warning but has until June 2026 to comply. In NFTs, collections like CryptoPunks dipped 1% to 27 ETH, while BAYC rose 3% to 4.99 ETH. The South Korean government approved $15 million in debt relief for crypto traders, and Hong Kong charged influencers over the JPEX collapse, which caused $206 million in losses. Elizabeth Warren voiced concerns on DEX risks, citing PancakeSwap and potential illicit ties. The FTC ordered Nomad to repay funds from its 2022 $186 million hack. Overall, these regulatory and corporate moves signal a pivotal shift toward stablecoin normalization in the US.