Introduction
Visa has extended its stablecoin settlement infrastructure into Central and Eastern Europe, the Middle East, and Africa (CEMEA) through a strategic partnership with Yellow Card. This collaboration aims to revolutionize cross-border payments by leveraging blockchain technology and stablecoins like USDC. The initiative underscores Visa’s commitment to building a faster, more transparent, and programmable global financial ecosystem.
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Key Highlights
- Faster Cross-Border Payments: Visa enables issuers and acquirers in CEMEA to settle transactions directly in USDC, bypassing traditional banking delays.
- Africa-Focused Solutions: Yellow Card’s expertise helps Visa deploy stablecoin-based treasury and liquidity solutions across Africa.
- Product Innovation: Visa’s VTAP platform and partnerships (e.g., BBVA, BVNK) support tokenized assets and Euro-backed stablecoins.
- 24/7 Settlement: Stablecoins provide uninterrupted transaction capabilities, enhancing liquidity and operational efficiency.
Visa’s Stablecoin Infrastructure in CEMEA
Blockchain-Powered Settlement
Visa’s stablecoin settlement system allows regional partners to process dollar-denominated transactions on blockchain networks. Key benefits include:
- Real-Time Availability: Transactions settle year-round without dependency on banking hours.
- Reduced Friction: Direct USDC settlements eliminate currency conversion delays.
- Scalability: Supports growing demand for digital payments in emerging markets.
Evolution of Visa’s Stablecoin Program
- 2023 Pilot: Launched with Crypto.com to enable crypto payments via Visa cards.
- Global Expansion: Extended to acquirers like Nuvei and Worldpay for USDC payouts.
- CEMEA Focus: Targets Africa and the Middle East to unify digital asset networks.
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Transforming African Payments with Yellow Card
Strategic Objectives
- Stablecoin Liquidity: Develop scalable treasury solutions for African markets.
- Regulatory Compliance: Ensure alignment with local financial regulations.
- Cross-Border Efficiency: Streamline remittances and merchant settlements.
Advanced Applications
- B2B Payments: Facilitate instant corporate transactions.
- Liquidity Pooling: Optimize balance sheets for financial institutions.
- Direct Settlements: Enable merchants to receive payments in stablecoins.
Visa’s Product Innovations for Stablecoins
Visa Tokenized Asset Platform (VTAP)
- Secure Issuance: Banks can launch stablecoins and tokenized deposits.
- Pilot Programs: BBVA testing a Euro-backed stablecoin on Ethereum.
Partnerships and Infrastructure
- BVNK Collaboration: Enhances global B2B settlement capabilities.
- API Standardization: Simplifies integration for institutional adopters.
FAQs
1. How does Visa’s stablecoin settlement work?
Visa partners process transactions in USDC via blockchain, enabling real-time settlements without traditional banking intermediaries.
2. Why is Africa a focus for Visa’s stablecoin expansion?
Africa’s rapid digital payment growth and remittance demands make it ideal for blockchain-based solutions like USDC.
3. What is VTAP?
VTAP is Visa’s platform for banks to issue and manage tokenized assets, including stablecoins.
4. How does Yellow Card support Visa’s goals?
Yellow Card provides regional expertise to deploy compliant stablecoin liquidity and treasury tools across Africa.
5. Are stablecoin settlements available 24/7?
Yes, blockchain networks enable round-the-clock transactions, unlike traditional banking systems.
Conclusion
Visa’s partnership with Yellow Card marks a pivotal step in integrating stablecoins into mainstream finance across CEMEA. By combining blockchain efficiency with regulatory compliance, Visa is paving the way for a more inclusive and programmable financial future.