- VISA is testing private, permissioned blockchain settlement using a dollar stablecoin with infrastructure firm Brale and the Canton Network.
- The proof of concept explores institutional demand for blockchain efficiency without exposing sensitive transaction data on a public ledger.
- This move aligns with a broader shift as stablecoins, now surpassing $300 billion, are poised to expand beyond crypto trading.
- The Canton Network, backed by major Wall Street firms, offers a privacy architecture where only transaction participants can see specific data.
Visa announced on Thursday it is testing whether privacy-enabled blockchain networks can support institutional stablecoin settlement without exposing sensitive data, in a proof of concept with stablecoin infrastructure company Brale and the Canton Network. The project simulates institutional payment flows using SBC, a US dollar-backed stablecoin issued by Brale, as Visa evaluates adding it to its settlement program.
This initiative extends Visa‘s earlier experiments, which USA.visa.com/about-visa/newsroom/press-releases.releaseId.17821.html” rel=”nofollow noopener”>began in 2021 with USDC on Ethereum, but now targets institutions wanting onchain efficiency without a public ledger. Consequently, the push comes as policymakers anticipate a broader shift in how payment stablecoins are used for commercial and cross-border payments.
S&P Global Ratings said in a Thursday report that global stablecoin issuance has surpassed $300 billion. The report noted that compliant US payment stablecoins could expand into merchant remittances and commercial payments once rules are finalized.
Meanwhile, the Canton Network, developed by Digital Asset, connects permissioned applications from institutions like JPMorgan and Goldman Sachs. Unlike public chains, only transaction participants and authorized regulators can see specific deal data on Canton.
The proof of concept will assess how Canton’s privacy can support faster settlement while letting institutions control data visibility. For banks, S&P Global said stablecoins could threaten some payments income but also offer new fee opportunities if they issue their own.
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