Visa Taps BVNK to Power Stablecoin Payouts on Visa Direct

Visa has partnered with BVNK, a global provider of stablecoin infrastructure, to pilot stablecoin payouts through its Visa Direct network. Under the initiative, select business clients can distribute payments in digital dollars to recipients' wallets, offering faster and more flexible transfers. This move aligns with growing demand for digital asset payments and expands Visa's payment options for its clients.

In parallel, U.S. banks are beginning to settle transactions using USDC, a dollar-backed stablecoin, on the Solana blockchain. Early adopters such as Cross River Bank and Lead Bank are participating, with broader adoption expected in 2026. This blockchain-based approach aims to provide faster transfers and seven-day settlement windows while maintaining the traditional card experience.

However, regulatory uncertainty remains a challenge for Visa's stablecoin initiatives. The proposed GENIUS Act establishes rules for payment stablecoins with 100% reserves but does not clarify oversight for settlements. This regulatory ambiguity raises concerns about capital requirements and operational risks for banks.

Why Did This Happen?

The pilot with BVNK reflects Visa's strategic commitment to innovation in digital payments. By leveraging stablecoins, Visa aims to offer faster and more efficient payment solutions to its business clients. The initiative also positions Visa to stay competitive in the evolving financial technology landscape.

The use of USDC on Solana by U.S. banks highlights a broader trend toward blockchain-based settlement methods. Solana's fast transaction speeds and low costs make it an attractive platform for financial institutions seeking to modernize their payment systems.

How Did Markets React?

Visa's stock declined nearly 5% following the announcement of its stablecoin initiatives, as investors weighed the regulatory risks and market uncertainty. The stock's decline reflects caution around the regulatory environment and potential challenges in scaling the new payment solutions.

Market analysts note that the $3.5 billion annualized stablecoin settlement run rate demonstrates a strong opportunity in the digital payments space. Early adopters integrating Visa's compliance and technical requirements are well-positioned to benefit from the expanding ecosystem.

What Are Analysts Watching Next?

Analysts are monitoring the regulatory landscape for further clarity on stablecoin oversight. The GENIUS Act and other proposed legislation may shape how banks and payment processors adopt stablecoin-based transactions.

Industry players are also tracking how U.S. banks navigate the operational and capital requirements associated with on-chain settlements. Visa's Stablecoins Advisory Practice aims to support compliant growth, but regulatory uncertainty remains a key factor in long-term success.

Payment processors, custodians, and gateways are exploring ways to support the growing demand for compliant and secure stablecoin solutions. The expanding ecosystem suggests a shift toward digital asset-based payments, with Visa playing a central role in the transition.