Visa Launches Stablecoin Platform, Adding Pressure on Circle
The platform is designed for banks and fintechs to issue, store, and settle digital dollars. Its debut raises the competitive stakes for USDC issuer Circle, while Open USD has backing from BlackRock and Coinbase.
Key Takeaways
- Visa is rolling out the Visa Stablecoin Platform, a managed system for issuing, storing, transferring, and redeeming stablecoins.
- The platform launches with support for Open USD and includes minting, redeeming, wallet infrastructure, and integration with Visa's payment network.
- The move adds fresh competitive pressure on Circle as stablecoins become more deeply embedded in payment infrastructure.
Visa has introduced a new stablecoin platform aimed at helping banks, fintechs, and crypto companies build products around digital dollars. The launch reflects the broader move from traditional payment rails toward blockchain-based settlement, even as competition in stablecoins continues to intensify.
What Visa Is Launching
The new Visa Stablecoin Platform, or VSP, is an enterprise service that gives institutions a single Visa-managed system for issuing, storing, transferring, and redeeming stablecoins. At launch, it supports Open USD, a newly launched stablecoin from Open Standard, along with tools for minting, redeeming, and wallet infrastructure for onchain assets.
Visa says the platform includes Wallet-as-a-Service, blockchain connectivity, and security features such as dual-approval workflows, audit logs, and transfer allow lists. It also connects to Visa's existing payment network, allowing financial institutions to use stablecoins for treasury management, settlement, and payment products without having to overhaul their current systems.
Jack Forestell, Visa's chief product and strategy officer, said stablecoins are appealing because they add a new layer of programmable money, but the harder part for institutions is making the operational side work.
Open USD Puts Pressure on the Market
The launch extends Visa's broader digital asset push. The company already supports stablecoin settlement for select partners, runs crypto-linked card programs, and has previously expanded blockchain-based cross-border payment services. In other words, Visa is moving further into infrastructure, not just staying in the card business.
Open Standard, the consortium behind Open USD, counts BlackRock, Alphabet, and Coinbase among its backers, along with Visa. The project is trying to win over banks, payment companies, and crypto exchanges by lowering minting and redemption fees and sending nearly all reserve revenue back to distribution partners. That setup is different from traditional stablecoins, where the issuer usually keeps the interest earned on reserves.
For Circle, that means more competition. USDC is the world's second-largest stablecoin after Tether's USDT, but Open USD's rise is starting to shift the market backdrop. Circle shares fell about 5 percent on Thursday and have been under pressure since Open Standard was introduced, suggesting investors are pricing in a possible change in how stablecoin revenue gets divided. The pressure on Circle also fits into a wider push by major players to reshape stablecoin infrastructure, as seen when Mizuho downgraded Circle after OpenUSD's rise.
Why This Matters for Europe
For European crypto readers, the main takeaway is that major payment networks are folding stablecoins more directly into their existing systems. That could help make stablecoins feel more normal in cross-border payments and settlement, while also prompting regulators to take a closer look at governance, reserves, and revenue sharing. It also shows how partnerships between financial institutions and tech companies are pushing stablecoins beyond a niche crypto use case and into the wider payments market.
