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Exciting news! Visa is ramping up its use of stablecoins for settling transactions across Central and Eastern Europe, the Middle East, and Africa (CEMEA) through a fantastic new partnership with Aquanow, a leading crypto infrastructure company.
In a recent announcement on Thursday, Visa shared that they’re teaming up with Aquanow to settle transactions using approved stablecoins like USDC. This exciting move aims to cut costs, ease operational struggles, and speed up settlement times. With a growing demand for quicker and more affordable cross-border payments from banks and payment companies, this partnership comes at just the right time.
The goal? To harness stablecoins for digitizing the backend of money transfers and allowing settlements to happen 24/7! Godfrey Sullivan, Visa’s head of product and solutions for the CEMEA region, mentioned that this integration will mean “faster and simpler settlements” for institutions in the area.
“Working with Aquanow is a crucial step toward modernizing payment systems, reducing dependency on traditional methods with many middlemen, and getting ready for the future of money transfers,” he added.
Related: Stablecoins become ‘global macroeconomic force’ as transactions reach $46T: Report
Stablecoin adoption skyrockets!
Originally, stablecoins were a simple way for crypto users to transfer funds between exchanges. Now, they’ve evolved to become as crucial as the US dollar in the on-chain economy. And guess what? They’re making waves beyond the crypto realm, increasingly being used for institutional settlements and payments!
Just earlier this week, Deutsche Börse announced exciting plans to integrate the EURAU, a euro-pegged stablecoin from AllUnity. This step will broaden their digital-asset strategy after previous partnerships with Circle’s Euro Coin (EURC) and Societe Generale-Forge’s EUR CoinVertible (EURCV).
Related: Standard Chartered predicts $1T may shift from emerging market banks to stablecoins by 2028
Deutsche Börse is set to start integrating EURAU into its institutional custody service, promising a full “integration of the euro stablecoin across their entire service portfolio” in the future.
Meanwhile, regulators are still figuring out how to classify and supervise stablecoin impacts within the banking system.
Erik Thedéen, the governor of Sweden’s central bank and chair of the Basel Committee on Banking Supervision, recently acknowledged that the committee might need a “different approach” to the current 1,250% risk weighting for crypto exposures.
On another note, Bank of England Deputy Governor Sarah Breeden mentioned her expectation that the UK will keep pace with US stablecoin regulations, indicating that major players might synchronize efforts as stablecoins become an integral part of payment and settlement methodologies.
Magazine: Crypto aimed to topple banks, but now it’s stepping into their shoes in the stablecoin showdown
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