Visa taps Aquanow to extend stablecoin settlements to Africa

Global payments giant Visa has partnered with Aquanow, a global digital assets company, to extend its stablecoin settlement capabilities across Central and Eastern Europe, the Middle East, and Africa (CEMEA).

Rather than relying solely on traditional banking rails, this partnership allows Visa’s network of issuers and acquirers in the region to settle transaction obligations using stablecoins, specifically USD Coin (USDC). It combines Aquanow’s digital assets and infrastructure with Visa’s traditional technology stack, enabling banks to transfer funds using blockchain technology instead of relying on legacy fiat wire transfers, and will support 365-day settlement capabilities.

“By harnessing the power of stablecoins and pairing them with our trusted global technology, we are enabling financial institutions in CEMEA to experience faster and simpler settlements,” said Godfrey Sullivan, Visa’s Head of Product and Solutions for CEMEA.

While swiping cards at a counter appears like an instantaneous transaction, the actual movement of funds between banks can take days due to reliance on legacy correspondent banking networks. The collaboration with Aquanow introduces a digital alternative where fiat currency is converted to stablecoins, cutting layers of intermediaries and costs, and reducing settlement timelines.

Visa piloted USDC settlements in 2023 and is now expanding this offering to the CEMEA region. The payment network company says that demand from financial institutions wanting quicker and more cost-effective cross-border transactions is rising sharply. Visa says its stablecoin rails have processed over $2.5 billion in annualised settlement volume, signalling that stablecoins are becoming essential infrastructure.

“Visa’s reliable global network has long moved money securely and efficiently. Together, Visa and Aquanow are unlocking new ways for institutions to participate in the digital economy,” Phil Sham, CEO of Aquanow, said.