Visa and Paxos Integrate Stablecoins to Boost Global Payments Efficiency

Visa and Paxos have announced a strategic partnership to integrate Paxos-issued stablecoins into Visa’s settlement infrastructure, marking a pivotal development in the convergence of traditional finance and blockchain technology. The collaboration involves the inclusion of USDG and PYUSD—both of which are fully collateralized and 1:1 pegged to the U.S. dollar—into Visa’s stablecoin settlement offering. This move builds on Visa’s prior success with a 2023 pilot that processed over $225 million in USDC transactions [1].

The partnership is expected to significantly enhance the speed and efficiency of global financial transactions. According to a 2022 Bank for International Settlements study, stablecoin-based settlements could reduce transaction times by up to 99% compared to traditional systems [1]. By leveraging these stablecoins, Visa aims to offer near-instant, low-cost cross-border payment solutions, which could be transformative in a multi-trillion-dollar financial landscape.

This development aligns with growing interest in stablecoins among institutional players. As Tether has reportedly stepped back from its euro-pegged stablecoin, other financial entities, including Societe Generale and Ripple, have expanded their own offerings, signaling a shift toward institutional-grade digital assets [2]. Mastercard has also predicted increased engagement from central banks in the space of digital currencies, suggesting a broader industry-wide trend [3].

The market for stablecoins has shown continued resilience, with a market capitalization reaching $190 billion, demonstrating sustained demand and use across global payment systems [4]. The integration of stablecoins into mainstream financial infrastructure is not merely speculative but increasingly practical, as evidenced by recent regulatory advancements. Central banks, including the European Central Bank and the UAE’s monetary authority, have either launched or are actively exploring digital currency initiatives, indicating a global push toward digitized financial systems [5].

By combining Visa’s extensive merchant network with Paxos’s regulatory-compliant digital assets, the partnership offers a scalable and trusted framework for real-time transactions. This collaboration could serve as a blueprint for future fintech innovations, showing how traditional financial institutions and blockchain-native firms can collaborate to meet the evolving needs of the digital economy [1].

Source:

[1] title: Paxos Partners with Stripe to Revolutionize Stablecoin Payments (url: https://cryptodnes.bg/en/news/fintech/page/2/)