Visa Extends Stablecoin Settlement Capabilities to CEMEA Region

Visa is broadening its application of stablecoins for settlement purposes across Central and Eastern Europe, the Middle East, and Africa (CEMEA) through a newly formed partnership with Aquanow, a prominent crypto infrastructure provider. The initiative responds to increasing demand from banks and payment processors for expedited and more economical cross-border payment solutions.

This strategic alliance is designed to harness the capabilities of stablecoins to digitize the back-end processes of money movement, thereby enabling round-the-clock settlement. Godfrey Sullivan, Visa’s head of product and solutions for the CEMEA region, conveyed that this integration will empower regional institutions to achieve faster and more streamlined settlement procedures. He further emphasized that the partnership with Aquanow represents a pivotal advancement in modernizing the underlying payment infrastructure, diminishing dependence on traditional systems laden with intermediaries, and preparing institutions for the evolving landscape of money transfer.

The Rise of Stablecoin Adoption

Initially conceived as a convenient mechanism for cryptocurrency users to transfer funds between exchanges, stablecoins have since evolved to mirror the role of the US dollar within the on-chain economy. Their utility is now expanding beyond the confines of the crypto-native ecosystem to encompass institutional settlements and payments.

Earlier in the week, Deutsche Börse, a key market infrastructure provider, unveiled its plans to integrate EURAU, a euro-pegged stablecoin issued by AllUnity. This move signifies a further expansion of the exchange group’s digital asset strategy, building upon existing relationships with Circle’s Euro Coin (EURC) and Societe Generale-Forge’s EUR CoinVertible (EURCV).

Regulatory Considerations

Regulatory bodies are actively engaged in determining the appropriate classification and oversight of stablecoin exposure within the banking sector. Erik Thedéen, governor of the Swedish central bank and chairman of the Basel Committee on Banking Supervision, recently acknowledged the potential need for an adjusted approach to the current 1,250% risk weighting applied to crypto exposures. In a separate statement, Bank of England Deputy Governor Sarah Breeden indicated that the UK is expected to align with the United States in terms of stablecoin regulation, suggesting a coordinated approach among major jurisdictions as stablecoins gain greater traction in payment and settlement systems.


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