Visa expanded its stablecoin settlement program by partnering with Aquanow, a Canadian digital asset infrastructure provider. The announcement confirms that Visa is now enabling select issuers and acquirers to settle transactions using approved stablecoins such as USDC. The focus is on the Central and Eastern Europe, Middle East and Africa region, where cross-border payments often move slowly and depend on fragmented banking networks.

Visa has been experimenting with stablecoin settlement for several years. The company originally piloted USDC settlement in 2023 and later expanded the program as transaction volumes grew. By late 2025, Visa reported a monthly stablecoin settlement volume that annualizes into the billions. That signals growing institutional comfort with regulated stablecoins and blockchain based financial infrastructure.

The Aquanow collaboration connects Visa’s traditional settlement network with Aquanow’s digital asset rails. Aquanow provides the infrastructure for converting between fiat and stablecoins and manages the movement of funds across blockchain networks. This supports faster clearing cycles and simplifies the backend steps normally required in cross-border settlement.

How this changes the payment workflow

Most card payments involve several intermediaries. There is the issuer, the acquirer, the card network and the banking partners that handle the actual movement of funds. When payments cross borders, additional correspondent banks often join the chain. Each participant adds time, cost and operational workload.

Stablecoin settlement shortens this chain. Instead of waiting for traditional banking rails to clear, Visa can settle eligible transactions using USDC on supported blockchains. The stablecoin flows directly between participating institutions through Aquanow’s infrastructure. That reduces settlement time and creates a 24/7 model that does not depend on banking hours or regional holidays.

The appeal is practical rather than ideological. Stablecoins like USDC are designed to maintain a one-to-one peg with the US dollar and are backed by audited reserves. Institutions view them as more predictable than most cryptocurrencies, which makes them suitable for settlement workflows.

Why CEMEA gets priority

CEMEA markets often struggle with slow correspondent banking chains and long settlement cycles. Payment providers face higher operational overhead when sending or receiving funds across multiple jurisdictions. Visa’s expansion into this region reflects clear demand for faster movement of money, especially for cross-border commerce, remittances and marketplace payouts.

Faster settlement improves liquidity for merchants and payment companies. Reduced waiting time between a transaction and the moment funds arrive can help companies manage cash flow with fewer buffers. It also supports a more resilient payment environment because settlement can happen continuously, even when local banking systems are offline.

Practical considerations for institutions

The benefits come with responsibilities. Institutions must ensure regulatory compliance in each jurisdiction where they operate. That includes clear rules around digital asset holding, anti-money laundering obligations and reporting requirements. Each participating issuer or acquirer also needs technical readiness to integrate with Aquanow’s infrastructure.

There is also the adoption curve. The value of stablecoin settlement increases as more institutions join the ecosystem. Early adopters gain speed advantages, but the long term impact depends on broad participation across issuers, acquirers and processors.

Key takeaways for fintech startups

Here is a short overview of what matters most.

• Stablecoin settlement offers faster, round-the-clock clearing for cross-border transactions.
  
  
• USDC provides dollar-denominated stability that is practical for institutional use.
  
  
• CEMEA markets may see the strongest impact due to existing settlement bottlenecks.
  
  
• Startups must consider regulatory and compliance obligations before using digital asset rails.
  
  
• The model is relevant for companies in remittances, global payouts, marketplaces or commerce platforms with international customers.

If your fintech team wants help mapping how stablecoin settlement could support your product or reduce operational friction, Your Fintech Story can guide you through that evaluation and help you choose the right approach.

Klarna has always experimented with payment convenience, so its move into stablecoins was not exactly shocking. Still, the announcement of KlarnaUSD and the headline number of 27 trillion dollars in annual stablecoin transactions raises eyebrows. It is a sign that stablecoins are becoming part of the mainstream payments conversation instead of something sitting on the edge of fintech.

Why KlarnaUSD Matters

KlarnaUSD is designed as a digital dollar tied to the US currency. The intention is to make online payments faster and cheaper by reducing the number of intermediaries that touch each transaction. This is the typical promise of digital settlement. What is different here is the scale of the company stepping into it. Klarna is a global brand with millions of active users, so even a modest adoption curve can push stablecoins further into the everyday consumer space.

Klarna is also framing this in practical terms. Lower fees, faster settlement, and fewer cross border frictions. These are familiar pain points in retail payments, and the company is essentially arguing that stablecoins can help trim operational overhead in ways card schemes and traditional rails struggle to match.

The Rise Of Stablecoin Payments

The larger backdrop is the growth of stablecoin usage worldwide. The 27 trillion dollar figure refers to the total volume processed across stablecoin networks over the last year. That number puts stablecoins in the territory of major card networks. It does not mean stablecoins have replaced cards. It simply shows that digital settlement on blockchain rails has reached a scale that serious players can no longer ignore.

A retail brand adopting stablecoin payments signals a shift. Until recently, most stablecoin activity was dominated by crypto exchanges, institutional traders, and treasury operations. Klarna’s announcement suggests that the conversation is moving toward practical consumer payments. This does not rewrite the rules overnight. It does, however, create a new benchmark for what a large fintech considers viable.

The Practical Reality For Merchants And Users

Merchants want lower fees and predictable settlement. Consumers want speed and clarity. Stablecoins can deliver both, but only if the infrastructure around them is easy to use and compliant with global regulatory norms. Klarna is approaching this by keeping the focus on user experience instead of the underlying technology. The customer does not need to understand how stablecoin rails work. They only need to feel that the checkout process is smooth.

The main hurdle remains regulation. Stablecoins are under scrutiny in the US and EU, and any large scale consumer rollout must navigate licensing, custody rules, and oversight. Klarna’s announcement does not remove these hurdles. It simply shows that fintechs are willing to engage with them.

Key takeaways for fintech startups

Before looking at the lessons, it helps to remember that Klarna is highlighting efficiency rather than novelty. That framing is a useful guide for smaller players.

• Stablecoin rails are becoming credible for realistic payment use cases.
  
  
• Efficiency arguments resonate more than technology arguments.
  
  
• Mainstream adoption will depend on simple user experience, not technical complexity.
  
  
• Regulation remains the biggest gating factor for consumer facing stablecoin products.
  
  
• Large fintechs entering the space create momentum that smaller players can piggyback on.

If you want to explore how developments like these might influence your own fintech roadmap, Your Fintech Story can help you navigate strategy and positioning.