Visa Tests Private Stablecoin Settlement on Canton With Brale and Bank-Grade Privacy Focus

Visa is testing a private stablecoin settlement system in a new proof of concept with Brale and the Canton Network. The goal is to see whether institutions can use blockchain for payments without exposing sensitive transaction details such as counterparties, positions, or payment flows. The test uses SBC, a US dollar-backed stablecoin issued by Brale, to simulate real institutional settlement activity.

Canton Network Backed by Major Wall Street Institutions

The Canton Network, developed by Digital Asset, is a permissioned blockchain designed specifically for financial institutions. It is backed by major players including JPMorgan, Goldman Sachs, BNP Paribas, and the Depository Trust & Clearing Corporation. Unlike public blockchains, Canton only allows transaction participants and approved regulators to view data, while still enabling synchronized and atomic settlement across different financial instruments.

Visa’s Shift From Public to Private Blockchain Use

Visa first experimented with stablecoin settlement in 2021 using USDC on Ethereum. The new pilot marks a shift toward private infrastructure aimed at banks and regulated institutions that want blockchain efficiency without public transparency of sensitive data. The system is also being evaluated for integration into Visa’s broader settlement program.

Stablecoin Growth and Banking Impact

The move comes as global stablecoin issuance surpasses $300 billion, with most demand still driven by crypto trading. Analysts expect regulated stablecoins under frameworks like the GENIUS Act to expand into cross-border payments and commercial settlement, potentially reshaping how banks handle payments and liquidity.