Visa's Dominance in the $18B Crypto Card Market: A Strategic Infrastructure Play for the Future of Stablecoin Payments

The global crypto card market has emerged as a pivotal battleground for traditional financial institutions seeking to bridge the gap between blockchain innovation and mainstream adoption. By 2025, this market had achieved an $18 billion annual run rate, driven by the explosive growth of stablecoin-linked transactions. Visa, long a dominant force in traditional payment rails, has seized a commanding position in this nascent space, processing over 90% of on-chain card transactions. This dominance is not accidental but the result of a meticulously executed infrastructure play that positions Visa to benefit from the long-term adoption of stablecoins in global commerce.

Market Dynamics and Visa's Strategic Positioning

The crypto card market's rapid expansion is fueled by stablecoins, which now account for 78% of total volume. Platforms like EtherFi and Cypher, both Visa-issued, have led the charge, with EtherFi alone generating $55.4 million in annual spending in 2025. This growth reflects a broader shift: consumers are increasingly using crypto-linked cards for everyday purchases, transforming digital assets from speculative tools into functional currency.

Visa's infrastructure investments have been critical to this transition. In 2025, the company launched USDC settlement in the United States, enabling select partners to settle VisaNet obligations using Circle's dollar-backed stablecoin. This innovation allows for 7-day-a-week settlement, including weekends and holidays, addressing a key limitation of traditional banking systems. By integrating blockchain-based liquidity, Visa has reduced operational friction for banks and fintechs, enhancing their ability to manage cash flows in real time.

Partnerships and Ecosystem Expansion

Visa's dominance is further reinforced by strategic partnerships that extend its stablecoin infrastructure. The company's collaboration with BVNK, a crypto infrastructure firm, enables businesses to fund Visa Direct payments in stablecoins, facilitating real-time digital dollar transfers to recipient wallets. This partnership, built on Visa Ventures' 2025 investment in BVNK, underscores Visa's commitment to expanding access to programmable money.

In the CEMEA region, Visa has integrated Aquanow's digital asset infrastructure to support USDC-based transactions. This move modernizes international settlement processes, allowing institutions to bypass legacy networks and intermediaries, thereby reducing costs and settlement times. Such initiatives align with a broader industry trend: stablecoins are increasingly being adopted as institutional liquidity tools, with projects like Deutsche Börse exploring EURAU for custody and settlement.

Regulatory Clarity and Long-Term Resilience

Regulatory developments have also bolstered Visa's infrastructure strategy. The U.S. government's passage of the GENIUS Act in July 2025 established a federal framework for payment stablecoins, mandating 1:1 reserves in liquid assets and stringent AML/CFT compliance. This regulatory clarity has created a robust foundation for scaling stablecoin adoption, ensuring that infrastructure is rigorously tested before expanding into global payment rails. Visa's early alignment with these standards- such as its USDC settlement capabilities-positions it as a trusted intermediary in a rapidly evolving landscape.

The Road to $5–10 Trillion: A Phased Infrastructure Play

Visa's long-term vision for stablecoin adoption is underpinned by a phased approach. By 2025, the company had already achieved a $3.5 billion annualized run rate in stablecoin settlements, with plans to expand this to global payment networks by 2027–2028. This timeline reflects a deliberate strategy: first, testing infrastructure in controlled environments (e.g., U.S. and CEMEA settlements), then scaling to broader retail and institutional use cases.

The potential payoff is immense. Analysts project that stablecoin-based payments could reach a $5–10 trillion market size within the next decade. Visa's infrastructure- ranging from its Stablecoins Advisory Practice to its Arc blockchain collaboration with Circle- is designed to capture a significant share of this growth. By offering end-to-end solutions for financial institutions, from settlement to compliance, Visa is not merely adapting to crypto adoption; it is shaping the architecture of the future payments ecosystem.

Conclusion: A Long-Term Infrastructure Winner

Visa's dominance in the $18B crypto card market is a testament to its ability to leverage infrastructure innovation and strategic partnerships. By anchoring stablecoin adoption in robust, regulated frameworks and expanding access to real-time, programmable payments, Visa is positioning itself as a long-term beneficiary of the blockchain revolution. For investors, this represents a compelling case: a legacy financial giant not only surviving the crypto transition but actively engineering the rails that will carry it forward.