Visa Expands Stablecoin Settlement to Include PYUSD USDG EURC on Avalanche Stellar

Visa is broadening its stablecoin settlement infrastructure to include three new tokens—PYUSD, USDG, and EURC—while expanding support to two additional blockchain networks: Avalanche and Stellar. This strategic move follows the company’s initial foray into stablecoin settlement using USD Coin on Ethereum in 2021 and reflects Visa’s continued push to integrate blockchain technology into global payment systems [1]. The integration of PayPal’s PYUSD, Paxos’ USDG, and Circle’s EURC allows for greater flexibility and accessibility in cross-border and digital transactions [1].

The addition of Avalanche and Stellar complements Visa’s existing support for Ethereum and Solana. These networks are recognized for their fast transaction speeds and low fees, offering significant advantages in payment processing [1]. Avalanche’s AVAX holds the 22nd largest market capitalization among cryptocurrencies, while Stellar’s XLM ranks 16th. By tapping into these platforms, Visa enhances the efficiency and scalability of its stablecoin infrastructure, supporting faster and more cost-effective money movement [1].

Stablecoins, which are pegged to stable assets like the U.S. dollar, have gained increasing traction among institutions and governments as a tool for digital transactions. Visa’s expansion aligns with this growing trend, offering scalable, secure, and interoperable payment solutions [1]. The recent U.S. legislative development—the GENIUS Act—has further legitimized the use and regulation of stablecoins, reinforcing their role in the future of finance [1].

Visa’s foray into crypto has not been limited to stablecoin settlements. In April 2024, the company partnered with Bridge, a unit of Stripe, to launch stablecoin-linked debit cards in Latin America, expanding digital currency access for consumers [1]. These initiatives highlight Visa’s broader strategy to integrate blockchain technology into traditional financial systems while maintaining compliance and security standards [1].

Market reactions to the latest developments have been mixed. Following the announcement, AVAX traded at $22.59, reflecting a 2.4% decline, while XLM remained stable at $0.40. Meanwhile, Visa’s stock closed down 1.5% on the same day [1]. Such volatility is common in the crypto and financial markets but underscores the significance of institutional players like Visa in shaping the adoption and perception of digital assets.

The expansion of stablecoin settlement to include PYUSD, USDG, and EURC, along with the integration of Avalanche and Stellar, represents a significant step forward in the evolution of digital payments. By supporting new tokens and blockchains, Visa enhances the interoperability and scalability of its payment infrastructure, paving the way for broader adoption of digital currencies in global finance [1].

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[1] Visa May Expand Stablecoin Settlement to Support AVAX and Additional Tokens on New Blockchains https://en.coinotag.com/visa-may-expand-stablecoin-settlement-to-support-avax-and-additional-tokens-on-new-blockchains/