Visa Expands Stablecoin Use in Emerging Markets as Daily Volumes Surge 10x in Four Years

Visa is advancing its integration of stablecoins into global cross-border payment systems, prioritizing emerging markets where demand for dollar-based transactions outpaces access to traditional banking. Cuy Sheffield, Visa’s head of crypto, emphasized that stablecoins will reshape international payments by enabling faster, lower-cost transfers, particularly in regions with underdeveloped financial infrastructure. Unlike the U.S. retail market, where stablecoins are unlikely to disrupt credit card usage, emerging economies stand to benefit from their ability to provide instant, borderless access to dollar-denominated value. Visa’s strategy centers on partnerships with fintechs and blockchain platforms to scale stablecoin adoption in Africa and Latin America, where existing collaborations with firms like Bridge (a Stripe company) and Yellow Card have already introduced stablecoin-linked Visa cards for converting digital assets into fiat currency [1].

The firm’s Visa Tokenized Asset Platform (VTAP) has processed $225 million in stablecoin volume using USDC, with plans to expand 24/7/365 settlements and support for additional blockchains. This initiative aligns with a broader industry shift, as stablecoins have grown into a $250 billion market, with daily transaction volumes surpassing $30 billion—a 10x increase over four years driven by cross-border remittances and institutional settlements [2]. By 2025, stablecoin-based remittances captured 3% of the $200 trillion global cross-border payment market, signaling a trajectory of growth as blockchain infrastructure matures.

Visa’s financial strength underpins its ability to invest in these innovations. With FY 2024 revenue of $35.93 billion and $18.69 billion in free cash flow, the company has allocated resources to partnerships with Anchorage, BBVA, and Circle, embedding stablecoin functionality into its network. These collaborations aim to facilitate real-time B2B settlements and expand Visa’s footprint in digital assets. However, consumer behavior remains a hurdle: despite stablecoins’ efficiency, most users still prefer traditional credit cards for rewards and brand trust, a trend Visa is addressing through its established relationships with banks and merchants [2].

Regulatory developments in 2025 have further solidified Visa’s position. The U.S. GENIUS Act and the EU’s MiCA framework have provided clarity on stablecoin reserves and oversight, fostering institutional confidence. Visa has actively engaged regulators to shape these policies, balancing compliance with innovation. This proactive approach positions the company as a bridge between traditional finance and blockchain ecosystems, though risks such as regulatory shifts and competition from decentralized finance (DeFi) platforms remain.

Analysts project that financial institutions must adopt stablecoin strategies by 2025 to remain competitive in the evolving payments landscape [2]. Visa’s forward P/E ratio of 20.83x by 2028 (compared to 34.6x in 2024) reflects growing earnings visibility, while its price-to-sales ratio of 18.07x underscores the premium placed on its network effects. As the firm explores tokenized deposits, real-time settlement systems, and AI-driven fraud detection, its ability to adapt to technological and regulatory changes will be critical to maintaining dominance in the digital payments sector [2].

Source: [1] [title1Visa's Head of Crypto Says the Payments Giant Isn't] [url1https://www.businessinsider.com/stablecoins-crypto-visa-emerging-markets-wmt-amzn-retail-consumers-2025-7] [2] [title2Visa's Strategic Position in the Evolving Payment] [url2https://www.ainvest.com/news/visa-strategic-position-evolving-payment-ecosystem-stablecoin-competition-2507/]