Visa Expands Stablecoin Settlement in CEMEA Region

According to Cointelegraph, Visa is broadening its use of stablecoins for transaction settlements in Central and Eastern Europe, the Middle East, and Africa (CEMEA) through a collaboration with crypto infrastructure firm Aquanow. Announced on Thursday, the partnership aims to utilize approved stablecoins like USDC to streamline transactions by reducing costs, operational friction, and settlement times. This initiative responds to the growing demand from banks and payment firms for more efficient cross-border payment solutions. By leveraging stablecoins, Visa intends to digitize the backend of money movement, enabling 24/7 settlement capabilities. Godfrey Sullivan, Visa’s head of product and solutions for the CEMEA region, emphasized that this integration will allow institutions in the area to benefit from faster and simpler settlements. He stated that the partnership with Aquanow is a significant step in modernizing payment systems, reducing dependency on traditional methods with multiple intermediaries, and preparing institutions for the future of financial transactions. Stablecoins, initially used by cryptocurrency users for transferring funds between exchanges, have evolved to play a role similar to the US dollar in the on-chain economy. Their use is expanding beyond the crypto-native world, now encompassing institutional settlements and payments. In a related development, Deutsche Börse, a market infrastructure provider, announced plans to integrate the EURAU euro-pegged stablecoin issued by AllUnity. This move is part of the exchange group's broader digital-asset strategy, which includes previous collaborations with Circle’s Euro Coin (EURC) and Societe Generale-Forge’s EUR CoinVertible (EURCV). Deutsche Börse plans to incorporate EURAU into its institutional custody service and aims for future integration of the euro stablecoin across its entire service portfolio. Regulatory discussions continue regarding the classification and supervision of stablecoin exposure within the banking system. Erik Thedéen, governor of the Swedish central bank and chair of the Basel Committee on Banking Supervision, acknowledged the potential need for a revised approach to the current 1,250% risk weighting for crypto exposures. Meanwhile, Bank of England Deputy Governor Sarah Breeden indicated that the UK intends to align with the United States on stablecoin regulation, suggesting that major jurisdictions may proceed in tandem as stablecoins become more integrated into payment and settlement systems.