Market dynamics show stablecoins expanding from crypto-to-crypto transfers to broader institutional settlement and payment use cases, alongside regulatory conversations.

The initiative introduces 365-day settlements, aiming to shorten settlement times, reduce costs, and lessen reliance on legacy correspondent banking by converting fiat to stablecoins during transfers.

The integration fuses Aquanow’s digital assets infrastructure with Visa’s technology stack, enabling financial institutions to settle fund transfers using stablecoins, specifically USD Coin (USDC).

This initiative builds on a 2023 pilot that reached an annualized $2.5 billion in transaction volume, signaling progress in modernizing back-end payment rails.

Driven by strong demand for stablecoins to digitize backend money movement and support 365-day settlement, signaling a push toward around-the-clock settlement cycles.

Regulatory progress in Canada with QCAD Digital Trust receiving approval for a Canadian dollar stablecoin illustrates growing maturity, while concerns about price volatility and investor protections remain.

This follows a successful USDC settlements pilot in 2023 and is driven by strong demand from financial institutions for faster, more cost-effective cross-border transactions in the CEMEA region.

The collaboration could enable near-instant settlements between banks and merchants, potentially reducing typical 5–7 day processing times.

Industry context shows competitors like Mastercard exploring stablecoin adoption, while Aquanow leverages Canadian crypto infrastructure to connect trading platforms to global markets.

Regulatory context includes ongoing discussions on how to classify and supervise stablecoin exposure in banking systems, with comments from major regulators on regulatory alignment.

The move sits within the broader growth of stablecoins in institutional settlements, with plans to integrate euro-stablecoins and other recent industry moves toward stablecoin-based settlement.

Visa expands stablecoin settlement capabilities in the CEMEA region by partnering with Aquanow, a digital assets platform, to digitize back-end money movement and offer faster, simpler settlements for institutions.