Visa is testing whether a privacy-enabled blockchain can handle institutional stablecoin settlement without exposing sensitive transaction data to the public ledger.
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Visa tests private stablecoin settlement as global supply tops $300B
Visa is testing whether a privacy-enabled blockchain can handle institutional stablecoin settlement without exposing sensitive transaction data to the public ledger.
Visa launched a proof of concept with Brale to test whether the SBC stablecoin, a dollar-backed token, can settle institutional payments on the Canton Network, a permissioned blockchain backed by JPMorgan, Goldman Sachs and BNP Paribas. The trial evaluates whether privacy-controlled blockchain infrastructure can support the speed and confidentiality requirements of large-scale payment flows, according to a June 4 announcement.
"Through our work with Brale, we're exploring how SBC on the Canton Network can support institutional settlement use cases that require both programmability and privacy controls," Cuy Sheffield, Visa's head of crypto, said in the release.
The trial uses SBC, a U.S. dollar-backed stablecoin issued by Brale, to simulate institutional payment flows on Canton. Visa's broader stablecoin settlement pilot reached a $7 billion annualized run rate as of April, up 50% from the prior quarter, and now spans nine blockchains including Ethereum, Solana, Avalanche and Stellar. Global stablecoin supply has surpassed $300 billion across currencies, S&P Global Ratings said in a June 4 report, with most demand still tied to crypto trading.
The test comes as policymakers advance the GENIUS Act, which would establish a federal framework for payment stablecoins in the U.S. S&P Global said stablecoins could threaten a portion of banks' payments income over time, pushing large financial institutions to test privacy-preserving settlement networks that can support regulated stablecoins and tokenized deposits.
Why Privacy Matters for Institutional Settlement
Institutional settlement has different requirements from public crypto transfers. Banks and payment firms need shared settlement rails but must limit visibility into counterparties, transaction amounts and liquidity movements. The Canton Network, developed by Digital Asset, is designed so only transaction participants and authorized regulators can see specific deal data, while still allowing atomic settlement across tokenized assets and cash-like instruments.
Visa processes more than $14 trillion in payments annually. Even a marginal efficiency gain on settlement costs would be worth pursuing if blockchain can deliver it reliably, the company said. The proof of concept will assess whether Canton's privacy architecture can support faster, programmable settlement while giving financial institutions control over sensitive data visibility.
What the GENIUS Act Means for Stablecoin Settlement
The Guiding and Establishing National Innovation in US Stablecoins Act, if finalized, would create a federal licensing framework for payment stablecoin issuers. S&P Global said U.S. payment stablecoins that comply with the GENIUS Act are expected to expand into merchant remittances and commercial payments once rules are finalized, with cross-border payments among the most promising near-term use cases.
For Brale, the collaboration offers a chance to place SBC in payment infrastructure rather than compete only on exchange liquidity. For the wider market, the project shows that payment firms are evaluating stablecoins less as a standalone crypto product and more as a settlement technology that may sit behind payment flows and institutional transfer networks.
This article is for informational purposes only and does not constitute investment advice.
[1] Visa Tests Private Stablecoin Settlement on Canton Network[2] Visa Bets on Brale’s SBC Stablecoin to Settle Payments on Canton Network[3] Visa and Brale Test SBC Stablecoin for Institutional Settlement[4] Why Visa Stock Topped the Market on Thursday[5] How Visa Advances Stablecoin Payment Vision With Brale Partnership?
