Visa has formed a partnership with the crypto infrastructure firm Aquanow to boost its stablecoin settlement capabilities across the CEMEA (Central and Eastern Europe, the Middle East, and Africa). The collaboration is designed to reduce cross-border transaction costs and operational difficulties.
In a recent announcement, Visa stated it would utilize approved stablecoins, such as USDC, to facilitate transactions, thus addressing the increasing demand from financial institutions for more efficient cross-border payment solutions.
This strategic move aims to modernize the processes involved in money movement and to provide round-the-clock settlement options. Godfrey Sullivan, Visa’s Head of Product and Solutions for the CEMEA region, highlighted that this integration will allow regional institutions to benefit from swifter and simpler settlements.
“Our partnership with Aquanow signifies an important advancement in updating the infrastructure of payments, reducing dependence on traditional systems which usually involve multiple intermediaries, and preparing institutions for the future of financial transactions.”
Phil Sham and Godfrey Sullivan
Aquanow CEO Phil Sham (left) and Visa CEMEA head of product and solutions Godfrey Sullivan (right).
Visa is not the only one exploring stablecoin usage. Deutsche Börse also revealed plans to integrate the euro-pegged stablecoin EURAU into its systems, highlighting a significant shift towards stablecoin adoption.
As stablecoins become increasingly prevalent in both crypto and traditional finance sectors, ongoing discussions among regulators regarding their classification and oversight are expected to shape future developments. Certain leaders in global banking, such as Erik Thedéen of Sweden’s central bank, acknowledge the need to reevaluate current regulatory approaches in light of stablecoin growth.
Meanwhile, Bank of England Deputy Governor Sarah Breeden expressed a commitment to aligning the UK’s stablecoin regulations with those in the United States, indicating a trend toward concurrent regulatory frameworks in major markets.
