Visa chose two small state banks, Cross River Bank and Lead Bank, to pilot stablecoin settlement in the U.S. Despite their modest size, these banks play a crucial role in the fintech ecosystem. Visa’s stablecoin journey began in 2021 with USDC for cross-border payments, expanding to different regions and markets in 2025.

Cross River Bank, established in 2008 in New Jersey, serves as a “banking-as-a-service” provider for fintech companies. Lead Bank, a community bank in Kansas City, has also shifted to a BaaS model. Both banks have secured a significant position in the U.S. fintech sector, attracting investments from firms like Andreessen Horowitz.

Visa’s stablecoin settlement pilot with these banks marks a significant step towards mainstream adoption. The collaboration could lead to a strong market presence, potentially tapping into a projected $3 trillion opportunity. Investors are closely watching the outcome of this partnership in the evolving landscape of digital payments.

Read more at Yahoo Finance: Meet the Tiny Crypto Banks Participating in Visa’s Stablecoin Pilot