Visa, a leading global payment technology company, has revealed its plans to broaden its stablecoin settlement capabilities. Alongside its integration with Solana (SOL), Visa has entered into partnerships with significant merchant acquirers, Worldpay and Nuvei.

Visa had previously established a dedicated account with Circle, the issuer of USDC (USD Coin). Under this new development, Visa will commence the transfer of USDC from its treasury to Worldpay and Nuvei. These two entities will play a pivotal role in directly facilitating payments for merchants.

The decision to opt for the Solana (SOL) network over Ethereum (ETH) was influenced by several factors, with transaction speed and fees being primary considerations. Solana (SOL) has notably demonstrated faster transaction speeds and a more cost-effective fee structure compared to Ethereum (ETH). Cuy Sheffield, Head of Crypto at Visa, expressed, “By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we’re enhancing the speed of cross-border settlement and providing a contemporary option for our clients to efficiently send or receive funds from Visa’s treasury.”

However, Sheffield emphasized that, despite the integration of stablecoins, the processing time to send funds to or from Visa’s treasury would remain consistent. This decision was made despite the promise of expedited transactions often associated with stablecoins. Jeremy Allaire, Co-Founder and CEO of Circle, also weighed in, stating that “Expanding the pilot exemplifies how combining USDC with Visa’s innovation paves the way for the future of payments, commerce, and financial applications.”

Will Visa’s Collaboration Impact Solana’s Price?

While Visa’s adoption of the SOL network for USDC transactions is a significant development, its precise impact on the native token of Solana, SOL, remains uncertain. SOL has observed a 4.82% increase in value within the past 24 hours and a 0.52% surge in the last hour. These recent gains may be attributed to Visa’s utilization of the Solana blockchain for stablecoin settlements.

Solana (SOL) has demonstrated remarkable growth throughout this year, notably rebounding from its challenges following the collapse of FTX in 2022.

Disclaimer: This article is based on information available as of September 05, 2023, and is intended solely for informational purposes. It does not constitute financial advice or an endorsement of any cryptocurrency, blockchain project, or payment technology company. Readers are encouraged to conduct their research and consider their financial circumstances before making any investment decisions.