Visa tests private blockchain stablecoin settlement

Visa has begun testing a new stablecoin settlement system with financial technology firm Brale, using a private blockchain network designed to keep transaction data confidential. The proof-of-concept project will evaluate the use of Brale’s U.S. dollar-backed SBC stablecoin on the Canton Network, a permissioned blockchain infrastructure developed for institutional use.

The initiative aims to determine whether privacy-focused blockchain technology can support faster and more programmable settlement for payments between financial institutions while allowing them to maintain strict control over sensitive transaction information. Unlike public blockchain networks, the Canton Network is structured so that transaction details are visible only to the directly involved parties and authorized regulators.

A company executive stated that stablecoin settlement has demonstrated potential to improve the speed and efficiency of moving money. Through the work with Brale, Visa is exploring how SBC on the Canton Network can support institutional settlement cases requiring both programmability and privacy controls. A representative for Brale said financial institutions are increasingly seeking...