Visa Launches Stablecoin Settlement on Solana as Crypto ETP Market Prepares for Expansion

Visa Brings Stablecoin Settlement to US Banking System

Visa has launched a stablecoin settlement service on the Solana blockchain, allowing US financial institutions to settle certain transactions with Visa using Circle's USDC stablecoin ^[2]. The first participants in this initiative include Cross River Bank and Lead Bank ^[2].

The move aims to reduce costs, operational friction, and settlement times by leveraging blockchain technology ^[2]. While stablecoin transfers are possible around the clock, traditional interbank and card settlement processes typically operate only during banking business days and hours ^[2].

Visa has been testing USDC settlement for years through pilot projects, including work with merchant acquirers and using Solana as a settlement channel ^[2]. However, this marks the first comprehensive rollout in the United States ^[2].

Looking ahead, Visa is serving as a design partner for Circle's planned Arc blockchain and intends to support this platform after its launch ^[2]. The development represents another signal that Solana is increasingly being perceived as backend infrastructure for financial applications rather than solely as a platform for speculative tokens ^[2].

Crypto ETP Market Set for Major Expansion

The crypto exchange-traded product (ETP) landscape is poised for significant growth following recent regulatory developments. Bitwise researcher Ryan Rasmussen highlighted that nearly 15 years have passed since Gemini co-founders Tyler and Cameron Winklevoss filed for the first Bitcoin ETF, yet only a "handful" of crypto ETPs exist on the market today ^[1].

Rasmussen used a restaurant analogy to describe the coming transformation: "You can imagine investors going through the restaurant and having like two things on the menu, they are not going to be very excited about it, and it's not going to be a very great experience, but now their going to go and have a menu that's like the cheesecake factory of ETPs" ^[1].

The optimism stems from new generic listing standards guidance that could facilitate numerous crypto ETP launches in the near future ^[1]. Bloomberg ETF analyst James Seyffart stated on September 17 that the policy change would be a positive step toward a "wave of spot crypto ETP launches" ^[1].

Impact on Altcoin Markets

Seoyoung Kim, an associate professor of finance at the Leavey School of Business at Santa Clara University, told Cointelegraph that while the regulatory changes may have limited impact on already "legitimized" categories such as Bitcoin and Ether, they could bring significant benefits to other crypto products ^[1].

Crypto analysts have aligned on the bullish impact of the SEC's new rules, suggesting that increased product availability could potentially trigger broader market movements ^[1].

Convergence of Traditional and Crypto Finance

These parallel developments—Visa's stablecoin settlement infrastructure and the anticipated expansion of crypto ETPs—illustrate the ongoing convergence of traditional financial systems with blockchain technology. Visa's initiative demonstrates how established payment networks are incorporating cryptocurrency rails for operational efficiency, while the ETP expansion signals growing institutional acceptance and regulatory clarity in the digital asset space.