Visa has selected the Solana blockchain for its stablecoin settlement pilot, citing the network’s high throughput, low fees, and technical advantages as key factors. This collaboration underscores Visa’s broader strategy to leverage blockchain technology for efficient cross-border payments and corporate treasury operations.
Why Solana? Visa’s Key Considerations
1. High Throughput & Scalability
Solana processes an average of 400 transactions per second (TPS), peaking at over 2,000 TPS during high demand—far exceeding Ethereum’s ~12 TPS. This scalability ensures Visa can handle high-volume payment settlements without congestion.
2. Parallel Transaction Processing
Solana’s ability to execute transactions in parallel (via its Sealevel runtime) optimizes efficiency for payment workflows, reducing latency and improving reliability.
3. Ultra-Low Transaction Costs
With fees typically under $0.001, Solana is significantly more cost-effective than Bitcoin or Ethereum, making it ideal for high-frequency settlement operations.
4. Rapid Finality
Transactions confirm in 400 milliseconds (slot time), meeting Visa’s need for near-instant settlement in cross-border transfers.
5. Decentralized & Resilient Network
As of July 2023, Solana’s network includes:
- 1,893 active validators
- 925 RPC nodes across 40 countries
- Support for multiple validator clients (e.g., Sig, Jito) to enhance stability and reduce single-point failures.
Visa’s Blockchain Expansion
This pilot extends Visa’s exploration of blockchain-based solutions, following its earlier USDC pilot on Ethereum. By testing Solana, Visa aims to evaluate:
- Suitability for corporate treasury operations
- Integration with global payment rails
- Potential for stablecoin-driven cross-border settlements.
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Market Impact & SOL Price Action
At the time of announcement, SOL traded at $18.19, recovering from a key Fibonacci retracement level. Visa’s endorsement highlights Solana’s growing role in institutional blockchain adoption.
FAQ Section
Q1: Why did Visa choose Solana over Ethereum?
A: Solana offers higher throughput, lower fees, and faster finality—critical for Visa’s payment settlement needs.
Q2: How does Solana achieve such low fees?
A: Its efficient consensus mechanism (Proof-of-History) and parallel processing reduce computational overhead.
Q3: Could this pilot lead to broader adoption of stablecoins?
A: Yes. Visa’s involvement legitimizes stablecoins (like USDC) for mainstream cross-border transactions.
Q4: Is Solana’s network reliable enough for Visa?
A: With 1,800+ validators and multi-client support, Solana provides enterprise-grade uptime.
👉 Learn more about Solana’s tech advantages