Visa Processes $200M in Stablecoin Settlements but Calls for Regulatory Clarity to Unlock Potential

Visa has reported processing over $200 million in stablecoin settlements, marking a significant milestone in its efforts to expand crypto infrastructure. The payment giant emphasized that while this volume reflects growing adoption of stablecoin technology, regulatory clarity remains a critical barrier to unlocking its full potential [1]. CEO Ryan McInerney highlighted the need for pragmatic frameworks to facilitate broader integration of stablecoins into global commerce, noting that the $200 million figure constitutes only a small fraction of Visa’s overall settlement volume [1].

The developments underscore Visa’s strategic investments in stablecoin infrastructure, including the launch of its Visa Tokenized Asset Platform (VTAP) and a seven-day-a-week settlement system. These initiatives align with partnerships such as BBVA, which plans to issue a stablecoin on the Ethereum blockchain later this year [1]. Visa has also invested in BVNK, a stablecoin infrastructure provider, and expanded collaborations in Africa through Yellow Card Financial, aiming to bring stablecoin payments to multiple markets by 2026 [1].

Global stablecoin activity has surged, with quarterly volume reaching $27.6 trillion in Q1 2025—exceeding the combined transaction volumes of Visa and Mastercard. This growth is driven by institutional interest, with major corporations like Amazon and Walmart exploring stablecoin integrations for high-volume transactions [1]. However, regulatory challenges persist. The U.S. GENIUS Act, which establishes federal oversight for USD-pegged stablecoins, mandates strict compliance measures, including Treasury oversight and asset disclosures. Critics argue the legislation could limit innovation by imposing barriers on non-bank issuers [1].

Visa’s cautious optimism contrasts with concerns from European regulators. ECB advisor Jürgen Schaaf warned that euro-backed stablecoins hold just 0.15% of the global $230 billion market, risking monetary sovereignty as dollar-dominated tokens dominate adoption. Meanwhile, African markets, which account for 43% of global crypto volume, remain a focal point for stablecoin expansion, with companies like Circle piloting USDC settlements to reduce cross-border payment costs [1][3].

The industry’s trajectory hinges on balancing innovation with regulation. While the GENIUS Act and similar frameworks aim to mitigate risks like money laundering, they also raise questions about market access for smaller players. Visa’s continued infrastructure investments, including fraud detection tools and blockchain-native solutions, signal its intent to position itself as a leader in the evolving stablecoin landscape [1].

Source:

[1] "Visa Processes $200M in Stablecoin Settlement But Says Tech Still Needs Regulatory Clarity" (https://cryptonews.com/news/visa-processes-200m-in-stablecoins-but-says-tech-still-needs-regulatory-clarity/)

[2] Bitwise

[3] Chainalysis