Payment giant Visa has expanded its stablecoin offerings on its settlement platform by adding support for several new stablecoins and blockchain networks, aiming to meet rising institutional demand. The company now supports Global Dollar, PayPal USD, and Euro Coin, in addition to its existing support for Circle’s USD Coin (USDC). Visa has also integrated two new blockchain networks for settlement: Stellar and Avalanche, building upon its previous support for Ethereum and Solana. This integration allows users to send and receive stablecoin payments across these supported blockchains or convert their stablecoin balances directly into traditional fiat currencies, thereby enhancing flexibility and utility. Institutional interest in stablecoins has seen a significant surge, particularly following the passing of the GENIUS stablecoin bill in the United States. This has led major tech firms, banks, and retailers to signal their intentions to enter the stablecoin market, intensifying the competitive landscape.

Rising Competition in the Stablecoin Market

Visa is facing increasing competition from other financial institutions that are either issuing their own stablecoins or integrating stablecoin services. Mastercard, a primary competitor, is actively collaborating with crypto companies and has already tokenized 30% of its transactions. Retail giants like Walmart and Amazon are reportedly exploring the launch of their own stablecoins to leverage the benefits of reduced cross-border transaction fees and near-instant settlements. Bank of America CEO Brian Moynihan has indicated plans for the bank to create a stablecoin and develop associated payment rails. Simultaneously, JPMorgan has partnered with Coinbase, enabling Chase customers to link their accounts and convert rewards points into USDC. Mastercard has acknowledged that stablecoins present a direct challenge to the business models of traditional payment processors, characterizing them as a disruptive technology. Noam Hurwitz, head of engineering at payments infrastructure company Alchemy, highlighted that on-chain stablecoin transaction volume has now surpassed that of Visa and Mastercard, positioning stablecoins as the "default settlement layer" for the internet. The total stablecoin market capitalization has grown to over $256 billion, underscoring the rapid adoption and growing institutional interest in this sector.

Frequently Asked Questions (FAQ)

Visa's Stablecoin Expansion

Q: Which new stablecoins does Visa now support? A: Visa now supports Global Dollar, PayPal USD, and Euro Coin. Q: Which new blockchain networks has Visa integrated for settlement? A: Visa has integrated the Stellar and Avalanche blockchain networks for settlement. Q: What are the benefits of Visa's expanded stablecoin support? A: The expanded support enhances flexibility and utility by enabling users to send and receive stablecoin payments over supported blockchains or convert their stablecoin balances directly into fiat currencies. Q: What is driving the increased institutional demand for stablecoins? A: The signing of the GENIUS stablecoin bill in the United States has been a key driver for increased institutional demand. Q: How does this expansion position Visa in the market? A: By expanding its stablecoin offerings, Visa is responding to rising institutional demand and staying competitive in a market where major tech firms, banks, and retailers are increasingly involved.

Crypto Market AI's Take

Visa's strategic move to integrate more stablecoins and blockchain networks like Stellar and Avalanche signals a clear recognition of the growing importance of digital assets in global finance. As more institutions enter the stablecoin arena, it highlights the need for robust and efficient payment infrastructure. Our platform, Crypto Market AI, leverages AI to provide cutting-edge market intelligence and trading tools, enabling users to navigate this evolving landscape with greater insight. We believe that the continued development and adoption of stablecoins, supported by major payment processors like Visa, will further accelerate the integration of digital currencies into mainstream financial systems. This expansion is a testament to the increasing maturity of the crypto market and its potential to revolutionize payments.

Visa expands stablecoin offerings amid rising competition from institutions

Rising Competition in the Stablecoin Market

Visa's Stablecoin Expansion

Crypto Market AI's Take

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