NymCard has become the first payments infrastructure provider to support Visa to settle card transaction batches using stablecoin USDC in the Gulf Cooperation Council (GCC), introducing a modern alternative to traditional fiat settlement rails.
How Does NymCard’s Stablecoin Settlement Work?
The ability to settle using stablecoins changes the way back-end processes for card issuers in the GCC region are conducted. Rather than using traditional banking settlement rails with their slower, batch-based operations, card issuers will now be able to settle immediately using USDC on a blockchain 24/7. This can alleviate card issuers’ need to pre-fund settlement accounts, significantly lowering their operational costs as they will not need to maintain large amounts of idle capital (collateral).
Visa has noted the benefits of this new settlement model through speed, transparency, and cost-effectiveness, while also providing the expected compliance and reliability of their global network.
The Importance of This Integration as a Significant Milestone
This decision has great importance for two key reasons:
- One, it is a very large and real-world use of blockchain technology by a prominent payment company in a very relevant and strategically important economic region.
- Two, this will serve to strengthen the growing use case for stablecoins: Not as an end-user payment method, but rather as an innovative back-end settlement mechanism for institutional capital flows.
By being the first stablecoin issuer to participate with Visa in the GCC region, NymCard is at the forefront of tech modernization in the finance sector and is setting a precedent for others to follow.
