Visa on Thursday introduced the Visa Stablecoin Platform (VSP), an enterprise service that lets banks, fintechs and crypto firms issue, store, transfer and redeem stablecoins through a single Visa-managed system. The platform initially supports Open USD (OpenUSD), a stablecoin from Open Standard, and includes wallet infrastructure, blockchain connectivity and security features such as dual-approval workflows and audit logs. The news sent shares of Circle, issuer of the USDC stablecoin, down about 5% as competition in the market heats up.
Visa's new stablecoin infrastructure
The Visa Stablecoin Platform combines Wallet-as-a-Service infrastructure, stablecoin issuance tools and integration with Visa's existing payment network. Financial institutions can use the platform to incorporate stablecoins into treasury management, settlement and payment products without replacing their current systems. Jack Forestell, Visa's chief product and strategy officer, said in a statement that stablecoins represent a new layer of programmable money, but the operational reality has been the main hurdle for institutions.
The launch builds on Visa's existing digital asset efforts, which already include stablecoin settlement for select partners, crypto-linked card programs and blockchain-based cross-border payment services. The company is positioning VSP as a way to simplify blockchain-based payments and settlement for mainstream financial players.
Open Standard and the competitive landscape
Open Standard, the consortium behind Open USD, counts Visa, BlackRock, Alphabet and Coinbase among its backers. The project aims to attract banks, payment firms and crypto exchanges by eliminating minting and redemption fees and returning nearly all reserve income to distribution partners. That model could shift the economics of stablecoins away from issuers and toward the companies that distribute them.
Circle, whose USDC is the second-largest stablecoin after Tether's USDT, has faced investor pressure since Open Standard was unveiled. Shares fell roughly 5% on Thursday, reflecting concerns that new revenue-sharing models could erode the economics of established issuers. The stablecoin market is becoming increasingly contested as more players enter the space with different value propositions.
Stablecoins as a payment tool
Stablecoins are cryptocurrencies designed to maintain a fixed value, typically by being pegged to the U.S. dollar. Unlike bitcoin or ether, they are widely used for payments, cross-border transfers and settlement because they combine blockchain speed with price stability. Visa's platform aims to make these tokens more accessible to traditional financial institutions, potentially accelerating their adoption in mainstream finance.