Visa Expands Stablecoin Support Amid Growing Institutional Competition

Payment giant Visa has significantly expanded its stablecoin settlement capabilities by adding support for four new digital currencies and two additional blockchain networks. The company announced Thursday that its platform now supports Global Dollar (USDG), PayPal USD (PYUSD), Euro Coin (EURC), and Circle's existing USD Coin (USDC), while integrating Stellar and Avalanche networks alongside previously supported Ethereum and Solana chains. This builds on Visa's growing stablecoin initiatives, including recent partnerships for USDC payment cards.

The enhanced platform allows institutional users to seamlessly send and receive stablecoin payments across multiple blockchain networks or convert their digital currency balances directly to traditional fiat money. This expansion comes as Visa positions itself to capitalize on the growing institutional adoption of stablecoins following favorable regulatory developments, including the recent signing of stablecoin legislation in the United States. The move also reflects Visa's substantial commitment to the stablecoin market, with the company processing over $200 million in stablecoin settlements as regulatory clarity improves.

However, Visa faces intensifying competition from an expanding roster of financial institutions and technology companies entering the stablecoin market. Major retailers like Walmart and Amazon are reportedly exploring launching their own stablecoins to benefit from reduced transaction fees and faster cross-border settlement times. Meanwhile, banking giants including Bank of America and JPMorgan are developing stablecoin strategies, with JPMorgan recently partnering with Coinbase to allow customers to convert reward points to USDC.

The competitive pressure reflects the disruptive potential of stablecoins to traditional payment processing models. Industry experts note that onchain stablecoin transaction volumes have already surpassed those of Visa and Mastercard combined, positioning stablecoins as the emerging "default settlement layer" for internet commerce. As institutional interest continues to surge, Visa's platform expansion represents a strategic move to maintain relevance in an increasingly digital payments landscape.