Visa Enhances Settlement Services for Digital Currency Assets
Visa Expands Settlement Platform to Support Stablecoins and Multiple Blockchains
In a significant move, Visa has expanded its settlement platform to include support for four new stablecoins and two additional blockchains. The new stablecoins include Global Dollar (USDG), PayPal USD (PYUSD), Euro Coin (EURC), and a couple of unnamed assets. The platform now supports the blockchains Stellar and Avalanche, in addition to the previously supported Ethereum and Solana networks.
This expansion allows users to transact with these stablecoins on multiple blockchains, enabling cross-border transactions and conversions between stablecoins and traditional fiat currencies. The new additions come through Visa’s partnership with Paxos, with USDG and PYUSD being dollar-backed stablecoins, and EURC being euro-backed.
Rubail Birwadker, Global Head of Growth Products and Strategic Partnerships at Visa, stated that Visa is building a multi-coin and multi-chain foundation to help meet the needs of partners worldwide. According to Birwadker, Visa's mission is to build the interoperable layer designed to make stablecoin payments work at scale, securely, reliably, and globally.
With this move, Visa aims to address the growing institutional demand amid evolving regulatory frameworks like the GENIUS Act in the U.S. and the MiCA framework in Europe. Visa believes that when stablecoins are trusted, scalable, and interoperable, they can fundamentally transform how money moves around the world.
Visa's network now enables interoperability across multiple blockchains, including Stellar and Avalanche, in addition to Ethereum and Solana. This interoperability allows for flexible settlement options by directly accepting for settlement stablecoins in connection with cards operating across multiple blockchains.
Visa has a history of real-world pilots and live stablecoin settlement activity. The company's crypto and treasury infrastructure capabilities now facilitate settlement in more than 25 fiat currencies worldwide, including EURC.
The expansion of stablecoin-linked card partners aims to meet the needs of banks, merchants, developers, and fintechs. Visa's settlement platform now supports four stablecoins, and select pilot participating Visa partners can now access settlement in both USD- and EUR-backed stablecoins.
As new stablecoins and blockchains continue to emerge, Visa's focus remains on providing utility and interoperability. The expansion into the stablecoin ecosystem is aimed at meeting the needs of partners globally and enabling stablecoin-linked cards to scale. This move strengthens Visa’s position in the stablecoin market and positions the company to address the growing demand for stable digital currencies in the global financial system.
[1] The GENIUS Act: https://www.congress.gov/bill/117th-congress/house-bill/3617 [2] MiCA Framework: https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12522-Markets-in-Crypto-Assets-MiCA [3] Visa's announcement: https://usa.visa.com/about-visa/blog/visa-expands-crypto-capabilities-with-new-partnerships-and-technology-integrations.html [4] Paxos' announcement: https://medium.com/paxos/paxos-partners-with-visa-to-launch-global-dollar-stablecoin-usdg-on-visa-network-85c974890c0c
- This interoperability across multiple blockchains, including Stellar and Avalanche, enables Visa's business in finance to support stablecoins like USDG, PYUSD, EURC, and others, leveraging the technological advancements in the stablecoin and blockchain sector.
- With the expansion of its settlement platform, Visa is not only addressing the growing institutional demand amid evolving regulatory frameworks like the GENIUS Act in the US and the MiCA framework in Europe, but also strengthening its position in the stablecoin market and positioning itself to meet the needs of partners globally in the evolving business of digital currencies.
