Visa Expands Stablecoin Support Amid Rising Market Growth and Competition

Visa has broadened its stablecoin capabilities by adding support for several new digital currencies, including Global Dollar (USDG), PayPal USD (PYUSD), and Euro Coin (EURC), alongside integrating two additional blockchain networks—Stellar and Avalanche—into its settlement platform [1]. This expansion follows growing institutional interest in stablecoins, especially after the recent U.S. passage of the GENIUS stablecoin bill, which has encouraged tech firms, banks, and major retailers to enter the market [2].

The move allows users to send, receive, and convert stablecoins into traditional fiat currency via Visa’s platform, enhancing the utility of digital assets in everyday transactions [1]. Currently, Visa supports stablecoin transfers on Ethereum, Solana, and the newly added networks, reinforcing its position in the evolving payments sector [2].

The stablecoin market has experienced notable growth, with a total market cap exceeding $256 billion [1]. However, adoption remains constrained by regulatory uncertainties and relatively low transaction volumes [4]. Despite these challenges, Visa continues to view stablecoins as a critical part of its digital payment strategy, reflecting confidence in their long-term potential [5].

Visa is not the only player making inroads in the stablecoin space. Major competitors like Mastercard have been actively integrating crypto solutions, including tokenizing a portion of their transactions and collaborating with crypto platforms [2]. Meanwhile, traditional financial giants such as JPMorgan are also exploring digital innovations, with JPMorgan recently partnering with Coinbase to allow customers to link Chase accounts directly to the crypto exchange [2].

The rise of stablecoins has introduced a new layer of competition in the payments sector. Retail giant Walmart and tech behemoth Amazon have been reported to be considering their own stablecoin offerings, aiming to leverage the benefits of reduced fees and faster cross-border transactions [2]. These developments highlight a broader shift in how traditional financial institutions are responding to the emergence of blockchain-based payment solutions [6].

Alchemy’s engineering head, Noam Hurwitz, noted that onchain stablecoin transaction volume has already surpassed that of Visa and Mastercard, positioning stablecoins as the “default settlement layer” for the internet [2]. This shift raises concerns among legacy payment processors, with Mastercard executives publicly acknowledging that stablecoins represent a direct threat to the traditional payment business model [2].

Visa’s recent financial performance has shown resilience, with third-quarter earnings exceeding expectations [3]. However, the market has responded with mixed reactions to some of its forecasts, including a relatively flat outlook for 2025 [8]. Despite this, Visa’s leadership remains optimistic about the future of stablecoin adoption, with the CEO describing the space as one with “lots of opportunity” [8].

As the stablecoin landscape continues to evolve, Visa’s strategic expansion may offer a competitive edge in a market where blockchain-based solutions are gaining traction [1]. The company’s proactive approach reflects a broader industry trend of financial institutions adapting to the digital transformation reshaping the payments sector [2].

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Source: [1] https://cointelegraph.com/news/visa-expands-stablecoin-offerings-institutions

[2] https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96537514/visa-expands-stablecoin-offerings-amid-rising-comp

[3] https://www.sharewise.com/us/news_articles/Visa_Beats_Q3_Earnings_Expectations_So_Why_Did_the_Market_Panic_MarketBeat_20250731_0229

[4] https://cryptoadventure.com/visa-flags-modest-stablecoin-uptake-calls-for-clear-us-regulation/

[5] https://www.bitcoininsider.org/article/280938/visa-stablecoin-settlements-top-200m-global-adoption-grows

[6] https://www.ainvest.com/news/resilient-consumer-spending-payment-giants-mastercard-visa-strategic-buys-volatile-macroeconomic-climate-2507/

[8] https://stocktwits.com/news-articles/markets/equity/visa-stock-dips-premarket-after-flat-2025-forecast-but-ceo-sees-lots-of-opportunity-in-stablecoin-adoption/choQxg7R5zj