Visa has launched the Visa Stablecoin Platform, an internal platform that will allow banks and fintech companies to work with stablecoins through existing payment systems. The company aims to expand the use of digital assets among its network of approximately 15,000 financial institutions and over 200 million merchants.
A stablecoin is a cryptocurrency whose value is backed by reserves and typically pegged to the dollar at a 1:1 ratio. Unlike regular cryptocurrency, stablecoins are designed for stable transactions.
Visa already processes several billion dollars in stablecoin transactions and handles approximately $15 trillion in payments annually. The new platform is intended to simplify the integration of such assets into existing financial infrastructure. According to Rubail Birwadker, Visa's head of development, the goal is not just access to stablecoins, but ensuring they can work within the settlement, cash flow, and banking processes of clients.
For merchants, using stablecoins could enable near-instant and low-cost transactions. Transactions go through the blockchain, creating a transparent and nearly immutable record of operations.
The first asset to become part of Visa's new infrastructure will be OUSD, a stablecoin introduced by the Open Standard consortium, which includes major financial companies. Visa supports other digital assets, including Circle's USDC and Paxos's USDG.
The company has been developing its stablecoin capabilities since 2020, when it became the first payment network to settle transactions in USDC, and in December launched a stablecoin settlement program. Competitors are also expanding in this area: Mastercard has introduced stablecoin settlement for banks and payment companies, while American Express and Mastercard are participating in initiatives around OUSD.