Visa has partnered with crypto infrastructure company Aquanow to expand stablecoin settlement in Central and Eastern Europe, the Middle East, and Africa, driven by demand for faster cross-border payments, through integration of approved stablecoins like USDC to reduce costs and settlement times.
The partnership, announced on Thursday, enables Visa to settle transactions using stablecoins such as USDC. This approach targets reductions in operational friction and settlement durations. Banks and payment companies in the CEMEA region have expressed strong demand for such solutions, seeking more efficient cross-border payment methods. Stablecoins, which maintain a stable value by pegging to fiat currencies like the US dollar, facilitate these improvements by allowing near-instantaneous transfers without the delays of traditional banking systems.
The initiative focuses on digitizing the backend processes of money movement. By incorporating stablecoins, Visa aims to support 24/7 settlement capabilities, contrasting with the limited hours of conventional financial networks. Godfrey Sullivan, Visa’s head of product and solutions for the CEMEA region, stated that the integration will allow institutions in the region “to experience faster and simpler settlements.” He further explained the broader objectives, saying, “Our partnership with Aquanow is another key step in modernizing the backend rails of payments, reducing reliance on traditional systems with multiple intermediaries, and preparing institutions for the future of money movement.” This collaboration leverages Aquanow’s expertise in crypto infrastructure to bridge traditional finance with blockchain-based technologies.
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Stablecoins originated as a mechanism for cryptocurrency users to transfer funds between exchanges without converting to volatile assets. Over time, they have assumed a function similar to the US dollar within the on-chain economy, serving as a stable medium of exchange on blockchain networks. Their application now extends beyond crypto-native environments, encompassing institutional settlement and payments in broader financial contexts. This expansion reflects growing acceptance of stablecoins in regulated financial operations.
Earlier in the week, Deutsche Börse, a major market infrastructure provider, revealed plans to integrate the EURAU euro-pegged stablecoin, issued by AllUnity, into its institutional custody service. This step builds on prior connections with other euro stablecoins, including Circle’s Euro Coin (EURC) and Société Générale-Forge’s EUR CoinVertible (EURCV). Deutsche Börse intends to initially incorporate EURAU into custody operations, with subsequent expansion to integration across its entire service portfolio. Such moves enhance the group’s digital-asset strategy by supporting euro-denominated stablecoin holdings for institutional clients.
Regulatory bodies continue to address the classification and oversight of stablecoin exposures within the banking sector. Erik Thedéen, governor of the Swedish central bank and chair of the Basel Committee on Banking Supervision, recently indicated that the committee may require a “different approach” to the existing 1,250% risk weighting applied to crypto exposures. This weighting currently imposes stringent capital requirements on banks holding such assets. Separately, Sarah Breeden, Deputy Governor of the Bank of England, noted that the UK plans to align its stablecoin regulations with those of the United States. She highlighted that major jurisdictions are likely to advance in parallel, given the increasing integration of stablecoins into payment and settlement infrastructures.
