Visa Joins BLOOM and Shinhan Adopts the Visa Stablecoin Platform

Visa announced two distinct stablecoin partnerships in the same week, and taken together they signal a decisive shift in how regulated stablecoin settlement is being wired into mainstream payment infrastructure across Asia-Pacific. The first move places Visa inside Singapore's MAS-backed BLOOM network alongside Circle, JP Morgan, and a growing roster of banks. The second ties South Korea's Shinhan Financial Group to the Visa Stablecoin Platform for stablecoin issuance, remittance, and redemption. For accounting, audit, and treasury teams, the practical question is not whether stablecoin settlement is coming. It is whether their ledgers, policies, and controls are ready for when it arrives.

What BLOOM Is and Why Visa's Participation Matters

BLOOM is a Monetary Authority of Singapore initiative. The acronym stands for Borderless, Liquid, Open, Online, Multi-currency, and the network is designed to enable settlement using regulated stablecoins and tokenised deposits, covering distribution, clearing, and the movement of settlement assets across borders and currencies.

Existing participants and the role of regulated stablecoins

Before Visa joined, BLOOM already included JP Morgan and Circle, the issuer of USDC. That combination of a major bank and a regulated stablecoin issuer gives the network both the traditional correspondent banking relationships and the on-chain settlement rails that make cross-border clearing practical. Visa's entry adds a card network layer, which is significant because card settlement, not just interbank transfers, can now potentially flow through the same regulated stablecoin infrastructure.

Nium, card settlement, and the collateral efficiency argument

Payments firm Nium joined BLOOM in November of the prior year and is also Visa's partner on the BLOOM work. Nium's involvement illustrates the core commercial rationale for card issuers participating in a stablecoin settlement network. Under traditional card settlement arrangements, Visa requires substantial prefunding or collateral from its issuing partners. By settling more frequently, including on weekends when conventional banking systems are closed, those partners can reduce the size of the collateral buffer they need to maintain. BLOOM's seven-day settlement capability directly addresses that friction. For a payments firm like Nium, the capital efficiency gain is tangible and immediate.

What this adds beyond the existing Nium relationship

Given that Nium already works with Visa and was already inside BLOOM, the natural question is what Visa's direct membership contributes. The answer is likely governance weight and network effect. Visa's presence as a principal participant, rather than simply as Nium's upstream partner, signals to other banks and payment firms that the network has the backing of tier-one infrastructure. That matters for regulatory dialogue with MAS and for attracting further institutional participants who want to see a card-network-grade counterparty inside the settlement chain before committing their own flows.

Shinhan Financial Group and the Visa Stablecoin Platform in Korea

South Korea's Shinhan Financial Group, one of the country's largest financial conglomerates, has announced a deal to adopt the Visa Stablecoin Platform. The stated scope covers three core functions: verifying stablecoin issuance, handling remittance, and managing redemption. Shinhan also intends to explore using stablecoins for card settlement, the same use case that connects back to the BLOOM announcement.

The regulatory context in Korea

Stablecoin legislation in South Korea is not yet finalised. The country has seen significant legislative activity in the digital asset space recently, but a settled statutory framework for stablecoin issuance by financial institutions does not yet exist. This is reflected in the cautious phrasing of the Shinhan announcement: the language around adopting the Visa Stablecoin Platform falls slightly short of a full operational commitment, and the reference to exploring a business model that works within the Korean regulatory environment suggests both parties are positioning for the moment when a clear framework arrives rather than launching at scale today. That positioning is itself strategically significant. By formalising the relationship now, Shinhan and Visa can run technical pilots, refine settlement workflows, and build internal controls before regulators require them.

Why card settlement is the key use case to watch

Visa's use of stablecoins for card settlement is not new technology. The company first trialled it approximately five years ago, and the capability is now relatively mature within its infrastructure. What is new is applying that maturity inside a regulated Korean financial group with the ambition of eventually settling card transactions in a Korean-law stablecoin. For accounting teams at Shinhan or any corporate counterparty, that means stablecoin flows will appear on the same settlement statements as conventional card transactions, requiring clear classification policies before volumes scale.

Stablecoin Accounting Implications for Finance Teams

Both developments, BLOOM and Shinhan, involve stablecoins moving through payment and settlement infrastructure in ways that generate accounting entries that are genuinely different from conventional cash or e-money flows. Getting the classification right from the start is considerably less painful than restating prior periods.

Classification under IFRS and US GAAP

Under IFRS, stablecoins held by a corporate or financial institution are most commonly classified as intangible assets under IAS 38, unless specific conditions allow classification as cash equivalents under IAS 7 or as financial instruments under IFRS 9. The distinction matters because intangible assets are carried at cost less impairment under the cost model, while financial instruments trigger fair value or amortised cost measurement depending on the business model and contractual cash flow tests. A stablecoin used purely as a settlement intermediary, received and disbursed within the same settlement cycle, may have a stronger argument for a different treatment than one held on balance sheet overnight or longer.

Under US GAAP, ASC 350-60 now provides specific guidance on crypto assets, requiring fair value measurement with changes recognised in net income each period. Stablecoins pegged to fiat currencies will typically show minimal fair value movement, but the measurement and disclosure requirement still applies. Firms relying on robust AICPA stablecoin accounting and mining revenue guidance will find that the updated practice aid addresses recognition and measurement questions directly relevant to settlement stablecoins like USDC. The AICPA has also addressed how how the AICPA updated its digital assets practice aid for stablecoin and mining revenue intersects with auditing standards, which is directly applicable to any institution planning to audit stablecoin settlement activity.

The role of crypto accounting software in settlement reconciliation

High-frequency stablecoin settlement, especially across a seven-day window, generates transaction volumes and timestamps that conventional general ledger systems were not designed to handle at speed. Crypto accounting software and digital asset accounting software need to capture on-chain settlement confirmations, match them to off-chain payment obligations, and produce a reconciled position at period end. For BLOOM participants, this means the reconciliation must span both the on-chain settlement record and the conventional card network statement. Any gap between the two is an audit finding waiting to happen. Crypto bookkeeping software that integrates directly with both data sources reduces that risk materially.

FX and multi-currency settlement entries

BLOOM is explicitly designed as a multi-currency network. That means stablecoin settlement may involve a USD-denominated stablecoin like USDC settling an obligation that originated in Singapore dollars or Korean won. The FX translation entry, and the question of when to recognise the exchange gain or loss, needs to be addressed in the accounting policy before the first settlement cycle runs. For Korean institutions like Shinhan, the additional layer of an unsettled domestic regulatory framework means the accounting policy may need to be drafted prospectively, on the basis of anticipated regulatory requirements, and updated when legislation finalises.

AML and Controls Considerations for BLOOM Participants

Joining a regulated settlement network like BLOOM does not eliminate the need for independent AML controls. MAS's framework for regulated stablecoins includes requirements around reserve transparency, redemption rights, and issuer licensing, but each participant in the settlement chain remains responsible for its own customer due diligence and transaction monitoring obligations. For a card network like Visa or a payments firm like Nium, that means stablecoin settlement flows need to be screened against sanctions lists and monitored for unusual patterns just as conventional payment flows are. The seven-day settlement window, which is one of BLOOM's key selling points, also means that AML monitoring cannot wait for a Monday morning batch run. Real-time or near-real-time screening capability is a practical necessity, not an enhancement.

What Finance and Accounting Teams Should Do Now

Neither the BLOOM membership nor the Shinhan announcement creates an immediate compliance deadline for third-party firms. But both signal the direction of travel clearly enough that preparation now avoids a scramble later.

Practical next steps

First, review your existing stablecoin accounting policy, if you have one, and test whether it covers settlement stablecoins received and disbursed within a single business day. If the policy assumes overnight holding, it may not be fit for purpose in a BLOOM-style settlement context.

Second, map your counterparty exposure. Any corporate or financial institution that settles card transactions through Nium, or that banks with Shinhan, may find stablecoin settlement flowing through relationships they had not previously flagged as digital asset exposures.

Third, assess your crypto bookkeeping software and digital asset accounting software stack for the ability to ingest on-chain settlement data alongside conventional payment records. The reconciliation gap between these two data sources is where errors accumulate.

Fourth, for firms with Korean operations or Korean banking relationships, monitor the legislative process for stablecoin regulation closely. When a framework is enacted, the accounting and compliance obligations for Korean stablecoin transactions will likely crystallise quickly, and firms that have already done the groundwork will be better positioned to respond.

Frequently Asked Questions

What is BLOOM and who runs it?

BLOOM, which stands for Borderless, Liquid, Open, Online, Multi-currency, is a settlement initiative backed by the Monetary Authority of Singapore. It is designed to enable cross-border settlement using regulated stablecoins and tokenised deposits, operating across a seven-day week rather than conventional banking hours.

How should USDC received through BLOOM be classified on the balance sheet?

The answer depends on your reporting framework and how long you hold the stablecoin. Under IFRS, most stablecoins sit as intangible assets under IAS 38 unless a specific case can be made for another classification. Under US GAAP, ASC 350-60 requires fair value measurement. A stablecoin that is received and disbursed within the same settlement cycle may attract different treatment from one held overnight, but the policy needs to be documented and applied consistently.

Does Shinhan's deal with Visa mean Korean firms must now comply with stablecoin rules?

Not immediately. Stablecoin legislation in South Korea is still being developed. The Shinhan announcement is better understood as a positioning move ahead of regulatory clarity rather than a live compliance trigger. Korean firms should monitor legislative developments and prepare their accounting and AML frameworks so they can move quickly when a statutory framework is enacted.

What does seven-day settlement mean for AML monitoring controls?

It means batch-based monitoring that runs on business days is insufficient. If settlement flows can occur on a Saturday night in Singapore, AML screening needs to cover that window. Participants should confirm that their transaction monitoring systems operate continuously, not only during conventional banking hours, and that alert escalation procedures function over weekends.

Which accounting standards apply to USDC accounting for card settlement purposes?

For US GAAP reporters, ASC 350-60 is the primary standard, requiring fair value measurement of crypto assets including stablecoins. The AICPA's updated digital assets practice aid provides additional guidance on recognition and measurement for settlement stablecoins. For IFRS reporters, IAS 38, IAS 7, and IFRS 9 are each potentially relevant depending on the nature of the holding and the contractual terms of the stablecoin, and the accounting policy choice needs to be documented and disclosed.

Source: Ledger Insights