US-based regulated stablecoin issuer Brale is working with Visa on a proof-of-concept test of stablecoin-based settlements between financial institutions and payment companies. Settlement will occur on the Canton Network, a blockchain built specifically for regulated financial institutions. Other parties in the Visa proof of concept (POC) include card issuer Rain and payment service provider Coinflow.

The Canton Network provides transaction-level privacy not found on other public blockchains, such as Ethereum, Solana, Cardano and Polygon, which are decentralized and open source. On the Canton Network, only parties that are part of the transaction can see its details. Multiple parties can transact using different private ledgers.

Brale already processes more than $100 million in transactions monthly on Canton, via a combination of stablecoin and fiat currency. Those transactions involve over 100 programs that deploy Brale stablecoins on a white-label basis.

Total business-to-business (B2B) settlements handled by Brale across multiple blockchains using Brale and other stablecoins tops $1 billion monthly. The company provides support for private transactions in 27 blockchains.

Brale earns revenue by licensing its technology to banks that want to issue their own stablecoins as well as through a SaaS model, where its clients pay on a per-transaction basis. Brale stablecoins were used by Bank of America in its on-chain U.S. Treasury financing trials with crypto trading firm Cumberland.

Created by the executive team that founded Dwolla, Brale was built to facilitate API-based account-to-account bank transfers through ACH and real-time networks in the US. The company understands how legacy settlement systems work and also provides its customers with access to the ACH, wire transfer systems and Plaid.

Blockchain economies of scale are moving quickly toward providing lower costs for B2B transactions than those tied to legacy settlement systems that use relational databases. Brale says that its costs are under $1 per minute.

Financial institutions that want to maximum flexibility in B2B settlements need a stablecoin service and a digital wallet capability to complement legacy wire transfer systems. Brale partners with over 80 digital wallet and liquidity providers.

In stablecoin settlement, Brale also handles repurchase agreements, which are referred to as repo transactions. These are shortterm lending deals between parties where the stablecoin issuer lends cash in exchange for liquid securities such as U.S. Treasuries under a binding agreement to buy back the collateral inclusive of payment of a premium.