Visa has tested stablecoin settlement using Brale’s SBC token on the Canton Network, as global stablecoin issuance has surpassed $300 billion, according to S&P Global Ratings.
Summary
- Visa, Brale, and Canton Network are testing private stablecoin settlement using SBC, a U.S.- dollar-backed stablecoin, on a permissioned blockchain network.
- The pilot examines whether financial institutions can settle transactions on-chain while keeping sensitive payment and settlement data hidden from public view.
According to a joint announcement from Visa, Brale, and Canton Network participants, the companies have launched a proof of concept that examines whether privacy-enabled blockchain infrastructure can support institutional stablecoin payments without exposing sensitive transaction details.
The test uses SBC, a U.S. dollar-backed stablecoin issued by Brale, to simulate settlement activity on Canton while Visa evaluates whether the token could become part of its stablecoin settlement program.
Rather than focusing on public blockchain networks, the initiative centers on a permissioned environment built for financial institutions that require tighter control over transaction visibility.
Over the past several years, Visa has steadily expanded its work with blockchain-based payments.
Earlier programs allowed settlement in Circle’s USDC on public networks such as Ethereum, while more recent projects have explored stablecoin-funded payments, tokenized asset spending, and crypto reward cards across multiple markets.
Canton network tested for private institutional payments
Developed by Digital Asset, Canton connects permissioned blockchain applications used by institutions including JPMorgan, Goldman Sachs, BNP Paribas, and the Depository Trust & Clearing Corporation.
Unlike public blockchains, Canton is structured so transaction data is visible only to involved parties and authorized regulators. The network is also designed to support atomic settlement across tokenized assets, digital cash instruments, and other financial contracts.
In the latest proof of concept, Visa and Brale said they are assessing whether Canton can provide faster and more programmable settlement while allowing banks, payment firms, and market infrastructure providers to maintain strict controls over confidential transaction and settlement information.
The project arrives as stablecoins continue to attract attention beyond cryptocurrency trading. S&P Global Ratings said in a report published Thursday that stablecoin issuance has exceeded $300 billion globally across multiple currencies, although most activity remains tied to crypto markets.
S&P Global Ratings stated that payment stablecoins complying with the Guiding and Establishing National Innovation in U.S. Stablecoins, or GENIUS Act, could expand into merchant payments, remittances, and commercial transactions once regulatory frameworks are finalized.
The ratings agency identified cross-border payments as one of the most promising early applications, while noting that current stablecoin payment volumes still account for only a small portion of international payment activity.
Recent Visa initiatives show how the company has been testing digital asset payments across different segments of the market.
In May, Visa partnered with WeFi to explore stablecoin-funded card payments in parts of Europe, Asia, and Latin America.
Another project announced this month enabled users of a Tether and Fasset-issued Visa card to spend tokenized gold while earning rewards denominated in Tether Gold.
Separately, SBI Group launched a Visa-linked card in Japan that provides Bitcoin, Ethereum, and XRP rewards through SBI VC Trade.
Banks weigh opportunities and risks
Beyond settlement efficiency, S&P Global Ratings said stablecoins could affect traditional banking economics over time by reducing a portion of payment-related revenue and moving some funding away from insured retail deposits toward larger wholesale balances.
At the same time, the ratings agency said banks that issue their own stablecoins or tokenized deposits could benefit from new fee income and funding opportunities.
According to S&P Global Ratings, these incentives are encouraging large financial institutions to evaluate infrastructure capable of supporting regulated payment stablecoins and tokenized deposit products while preserving privacy requirements expected in institutional markets.
