Lloyds and Visa Complete $750,000 USDC Settlement Pilot for Weekend Transactions

Lloyds Banking Group and Visa have wrapped up a live pilot that settled $750,000 in US dollar payment obligations using USDC, the dollar-pegged stablecoin. The seven-day trial concluded on 30 September 2026, aiming to test cross-border settlement outside normal banking hours, a gap that has long frustrated corporate treasurers.

Funds reached Visa in under one hour, including on weekends, when traditional payment rails typically go quiet. The dollar obligations were booked through Lloyds’ Corporate Markets branch in Jersey, where the bank settled what it owed Visa using USDC instead of a conventional dollar transfer. Lloyds acquired the USDC through Archax, a UK-regulated digital asset exchange, ensuring compliance with regulatory standards.

The pilot also tested interoperability between the Canton blockchain network and public blockchains, with transactions settled across Canton alongside other platforms. Peter Left, Lloyds’ Head of Digital Assets, highlighted the benefits for corporate clients, including better visibility into liquidity and greater operational flexibility.

This initiative marks the first stablecoin settlement effort between Visa and a major UK banking group, expanding Visa's US-focused USDC settlement initiatives to the UK. The pilot's sub-hour settlement, including over weekends, showcases the advantages of blockchain technology over traditional banking systems.

The implications for corporate treasury operations are significant. If stablecoin settlement becomes routine, companies may manage liquidity more effectively, potentially holding smaller buffers against settlement delays. However, caution is warranted as this pilot is not yet a full product launch, and $750,000 is a small figure compared to the volumes in correspondent banking.

The pilot's success also underscores the importance of regulated intermediaries like Archax in facilitating such transactions, which may serve as a template for other banks considering similar moves. The interoperability findings could lead to enhanced connections between private networks and public blockchains, allowing banks to balance control with reach.

New Developments in Stablecoin Technology

• Circle launched three developer kits on September 30, 2026, enabling stablecoin purchases, lending, and borrowing directly within applications.
• The Onramp Kit allows users to buy USDC and EURC using Apple Pay, Google Pay, or debit cards, available for eligible users in the US, UK, and EU after KYC checks.
• The Earn Kit enables apps to offer lending opportunities for USDC and EURC, utilizing the Morpho decentralized lending protocol to generate yield.
• The Borrow Kit allows users to take out USDC loans using cirBTC as collateral, facilitated through Morpho-supported markets.
• Within days of Arc's mainnet launch on September 16, 2026, $649 million in USDC and $7 million in EURC were transacted on the network.
• Circle acquired Tazapay for $400 million, enhancing its cross-border payments capabilities and introducing 24/7 stablecoin foreign exchange settlement with StableFX.