Visa, a leading global player in digital payments, is taking significant steps to modernize its settlement systems by integrating new stablecoins and innovative blockchain technologies.
This initiative is part of a broader shift towards embracing digital currencies, particularly as the U.S. government recently enacted key legislation designed to provide clarity and support for the evolving cryptocurrency landscape.
Visa’s Ambitious Multicurrency Strategy
In a recent press release, Visa unveiled plans to add two new stablecoins based on the U.S. dollar—PayPal’s PYUSD and Circle’s USD Coin (USDC)—as well as a euro-pegged stablecoin, EURC, in addition to support for two new blockchains.
Rubail Birwadker, who heads Visa’s global growth products and strategic partnerships, articulated the vision behind this move, highlighting its goal of creating a comprehensive, multicurrency and multichain network.
He remarked, “The potential of stablecoins lies in their ability to be reliable, scalable, and interoperable, which can revolutionize international money transfer.”
Visa’s partnership with Paxos represents a crucial advancement, enabling the introduction of the Global Dollar and PayPal USD into its settlement ecosystem.
Alongside the existing support for Ethereum (ETH) and Solana (SOL), the platform will also accommodate the Stellar (XLM) and Avalanche (AVAX) blockchains, paving the way for a richer array of transactional options for its partners.
This expansion allows Visa to facilitate diverse settlement choices, empowering transactions in both USD- and EUR-backed stablecoins, thus reinforcing its digital finance infrastructure.
Corporate Finance Embraces Stablecoins
The announcement aligns with a recent White House report emphasizing the necessity for a clear digital asset policy. As discussed in Bitrabo, this report examines the administration’s stance towards digital currencies, focusing on stablecoins and Bitcoin (BTC).
It highlights the risk of diminishing U.S. dollar dominance globally if the integration of stablecoins is neglected. Further, the report advocates for a flexible regulatory framework to accommodate technological advancements, suggesting that banking regulators design risk models that are neutral to technology.
This would mitigate the existing burdens on banks dealing with digital assets and blockchain technology, complementing the newly enacted GENIUS Act, which enhances the allure of dollar-linked cryptocurrencies.
The surging interest in stablecoins is notable, especially within the domain of corporate finance. Industry pioneers such as Tanner Taddeo, CEO of Stable Sea, and Brett Turner, CEO of Trovata, have articulated the benefits of stablecoins, emphasizing their ability to facilitate near-instantaneous transactions while lowering costs.
Taddeo pointed out that transferring large sums—between $10 million and $30 million—across borders traditionally takes three to five business days; however, with the adoption of stablecoins, these transactions can be executed in just four to eight hours.
Image sourced from DALL-E, data visualized by TradingView.com
