Stablecoins surpassed $290 billion in market capitalization by 2025, marking explosive growth in digital assets. Visa's with Aquanow expands stablecoin settlements across Central and Eastern Europe, Middle East, and Africa. This move accelerates by modernizing payment rails.
The Aquanow partnership Explained
Visa teamed up with Aquanow, a digital assets provider, to integrate stablecoin technology into its network. The deal allows issuers and acquirers to settle using USDC for faster transactions.
According to Godfrey Sullivan of Visa, this harnesses stablecoins for simpler settlements in CEMEA, cutting intermediaries. Phil Sham of Aquanow noted it unlocks institutional participation in the digital economy.
This enables 365-day operations and reduces costs significantly. Stablecoins like USDC handled $2.5 billion in annualized pilots, per Visa data.
Stablecoin adoption Trends in EMEA
Europe leads as the world's largest crypto market, with defi activity surging threefold since mid-2023, says Chainalysis. Stablecoins drive 30% of crypto transactions globally, reports TRM Labs.
In the Middle East and Africa, adoption grows amid remittance needs. MiCA regulations in the EU boost confidence in stablecoin use.
This partnership aligns with trends, enhancing cefi platforms like Visa's for broader reach. Institutions now access efficient cross-border tools.
Bridging CeFi and DeFi Ecosystems
CeFi entities like Visa provide regulated gateways to stablecoins. This integration supports defi protocols by offering stable liquidity.
Stablecoins act as collateral in defi lending and serve as base pairs for trading. Their stability aids defi growth in EMEA regions.
Analysts at Goldman Sachs highlight stablecoins' role in modernizing finance post-GENIUS Act. This fosters hybrid models blending cefi security with defi innovation.
Stablecoins' Role in NFTs and Beyond
NFTs often transact via stablecoins to avoid volatility in EMEA markets. Platforms use them for minting and sales, per ECB insights.
This Visa move could extend to NFT ecosystems by stabilizing payments. It promotes in creative industries across Africa and the Middle East.
DeFi and NFT intersections benefit from cefi-backed stablecoins. Users gain actionable tools for secure, low-cost deals.
Broader Implications for Global Finance
The partnership reduces settlement times, making cefi more competitive. It prepares institutions for defi-like efficiency without full decentralization.
In Africa, where remittances exceed $50 billion annually, stablecoins cut fees by up to 50%, based on Brookings data. This drives real-world adoption.
Europe's MiCA framework ensures compliance, encouraging NFT and defi projects. Visa's step signals mainstream .
Future Outlook and Challenges
Stablecoins face regulatory scrutiny, but EMEA's progress mitigates risks. ECB warns of stability threats, yet adoption trends suggest resilience.
Institutions must navigate interconnectedness with defi and cefi. This partnership offers a model for balanced growth.
This Visa-Aquanow collaboration highlights stablecoins' pivotal role in evolving finance. It equips users with tools for efficient, inclusive transactions across categories like adoption, cefi, defi, and nfts.
