In a bold move to solidify its position at the forefront of digital currency transactions, Visa announced on Thursday its expansion of the stablecoin settlement platform to include two new blockchains: Stellar and Avalanche. This strategic enhancement now allows Visa to support a total of four stablecoins across four blockchains, marking a significant step in the evolution of digital payments.
The Expansion and Its Implications
The expansion integrates new dollar-pegged tokens, PayPal USD (PYUSD) and Global Dollar (USDG), through a collaboration with Paxos. Additionally, Visa is incorporating the euro-backed EURC, issued by Circle Internet, thereby facilitating settlement in both U.S. dollars and euros. By broadening its network, Visa is not just diversifying its offerings but is also aiming to reduce transactional friction for wallets and developers. As Rubail Birwadker, Visa’s global head of growth products and strategic partnerships, noted, “We believe that when stablecoins are trusted, scalable and interoperable, they can fundamentally transform how money moves around the world.”
The inclusion of Stellar and Avalanche in Visa’s settlement platform—on top of its existing support for Ethereum and Solana—shows a calculated response to the burgeoning demand for fast and reliable cross-border transactions. Notably, stablecoins have been gaining traction among payment providers, fintech companies, and banks as they seek more efficient ways to handle international transactions. Visa, a titan in traditional payments, began exploring settlements with USDC in 2020 and has been a trailblazer in the stablecoin arena ever since. This follows a pattern of institutional adoption, which we detailed in Jamie Dimon Says JPMorgan to Get More Involved With Stablecoins.
A Step Towards Interoperability
Visa’s announcement is not just about expanding its technological capabilities; it represents a larger trend toward interoperability in the cryptocurrency world. By supporting multiple stablecoins and blockchains, Visa is laying the groundwork for a seamless and integrated payment ecosystem. The company’s tokenization platform, unveiled last year, was a precursor to this move, designed to aid banks and institutions in issuing tokens and stablecoins.
The timing of Visa’s expansion is noteworthy, as it aligns with a broader market trend where stablecoins are increasingly seen as a viable alternative to traditional currencies in digital transactions. According to industry insiders, this strategic shift by Visa could potentially accelerate the adoption of stablecoins in mainstream financial systems. For a deeper dive into the market dynamics, see HTX Rolls Out Multi-Layered Incentives to Welcome Users Into the Next Frontier in the Golden Age of Stablecoins.
A Look Back and Ahead
Visa’s journey into the stablecoin space has been both ambitious and calculated. Starting with its exploration of USDC settlements in 2020, the company has consistently pushed the envelope in integrating digital currencies into traditional financial frameworks. The unveiling of its tokenization platform last year was a testament to Visa’s commitment to innovation and adaptation in a rapidly evolving market.
However, the path forward is not without its challenges. While the integration of multiple blockchains and stablecoins presents opportunities, it also raises questions about regulatory compliance and technological scalability. The crypto market is notoriously volatile and unpredictable, and Visa will need to navigate these waters with caution.
As Visa continues to expand its digital currency capabilities, the implications for the payment industry are profound. The move not only underscores the growing importance of stablecoins but also highlights Visa’s role as a pioneer in the digital currency revolution. As for what’s next, the industry will be watching closely to see how Visa’s expanded platform performs and whether it can indeed deliver on its promise of transforming global money movement.
With these developments, Visa is positioning itself as a key player in the future of digital payments, leaving many to wonder—can this trend continue, or will unforeseen obstacles derail Visa’s ambitious plans? Only time will tell, but for now, Visa’s expansion into the stablecoin realm is a significant milestone in the ongoing evolution of the financial landscape.
Source
This article is based on: Visa Expands Settlement Platform to Stellar, Avalanche, Adds Support for 3 Stablecoins
Further Reading
Deepen your understanding with these related articles:
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- BREAKING: PayPal Goes All-In On Crypto Payments—Even Memecoins Are In
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
