Visa Tests Private Stablecoin Settlement
BITmarkets Team
Jun 08, 2026
The initiative, announced on Thursday, is being conducted in partnership with stablecoin infrastructure provider Brale and the Canton Network, a permissioned blockchain platform supported by several major Wall Street institutions. As part of the proof of concept, the companies are using SBC, a US dollar-backed stablecoin issued by Brale, to simulate institutional payment activity. The goal is to evaluate whether SBC could eventually be integrated into Visa’s growing stablecoin settlement program.
The project builds on Visa’s earlier stablecoin experiments, which began in 2021 with USDC settlements on the Ethereum blockchain. While those efforts focused on public networks, the latest initiative is aimed at banks and financial institutions seeking blockchain efficiency without exposing transaction details, counterparties or fund flows on transparent public ledgers.
Stablecoins move beyond crypto trading
Visa’s latest experiment comes as stablecoins continue expanding beyond their traditional role within cryptocurrency markets. According to a report released Thursday by S&P Global Ratings, global stablecoin issuance has already surpassed $300 billion across various currencies. While the majority of stablecoin demand remains linked to crypto trading activity, analysts expect broader adoption across mainstream financial services.
The report noted that payment-focused stablecoins complying with the Guiding and Establishing National Innovation in US Stablecoins (GENIUS) Act could increasingly be used for merchant payments, remittances and commercial transactions once the regulatory framework is finalized.
Cross-border payments are widely viewed as one of the most promising near-term applications. Although stablecoin-based international transfers currently account for only a small portion of global payment volumes, their usage continues to grow as institutions explore faster and more cost-effective settlement methods.
Canton Network targets institutional privacy
At the center of the project is the Canton Network, a blockchain infrastructure developed by Digital Asset and designed specifically for institutional use. The network connects permissioned blockchain applications operated by major financial organizations, including JPMorgan, Goldman Sachs, BNP Paribas and the Depository Trust & Clearing Corporation (DTCC).
Unlike public blockchains, where transaction data is typically visible to anyone, Canton allows only transaction participants and authorized regulators to access specific information. At the same time, it enables atomic settlement across tokenized assets, cash-like instruments and financial contracts.
The proof of concept will examine whether Canton’s privacy-focused architecture can deliver faster and more programmable settlements while allowing institutions to maintain strict control over sensitive transaction and settlement information.
Banks assess future stablecoin opportunities
For financial institutions, the project represents more than a technological experiment. According to S&P Global, widespread stablecoin adoption could eventually challenge parts of traditional banking revenue streams, particularly in payments. Stablecoins may also shift some customer funds away from insured retail deposits toward more concentrated institutional balances.
At the same time, banks that issue their own stablecoins or tokenized deposits could unlock new revenue opportunities through fees, settlement services and funding activities. These dynamics are encouraging major financial institutions to explore privacy-preserving blockchain networks capable of supporting both GENIUS-compliant payment stablecoins and tokenized deposit systems.
While Visa, Brale and Digital Asset have not yet provided additional details regarding future implementation plans, the initiative highlights growing institutional interest in combining blockchain efficiency with the privacy and compliance standards required by traditional finance.
Sources:
https://usa.visa.com/about-visa/newsroom/press-releases.releaseId.17821.html
