Lloyds Tests Stablecoin Settlement with Visa in Groundbreaking Trial

Lloyds Banking Group, a 320-year-old banking institution, recently conducted a seven-day trial with Visa, using USDC to settle $750,000 in live payment obligations. This trial marked the first stablecoin settlement between Visa and a major UK banking group, testing the functionality of stablecoin settlement across private and public blockchain environments.

During the trial, Lloyds used its own node on Canton, a blockchain network with configurable privacy features, while Visa supported settlement on a separate public blockchain. The funds were transferred from Lloyds to Visa in under an hour, including on weekends, demonstrating the ability to operate around the clock.

The use of USDC as a stablecoin allowed for faster settlement times, bypassing traditional banking hours. This is particularly significant for businesses that operate on weekends or holidays, as it enables them to settle obligations more efficiently. The trial involved a modest amount of money, but its implications for cross-border settlement are substantial.