Visa is actively working to integrate stablecoins into its existing payment infrastructure, aiming to maintain its leadership position as these digital tokens gain traction globally. The initiative reflects Visa’s strategy to bridge emerging blockchain-based payment models with its vast merchant acceptance network, according to Cuy Sheffield, Visa’s Head of Crypto.
Why Stablecoins Matter
Stablecoins are cryptocurrencies typically pegged to fiat currencies such as the US dollar, enabling funds to move outside traditional banking systems while maintaining price stability. Their circulation has surged in recent years, led by Tether’s USDT, which now has approximately US$187 billion tokens in circulation. Despite this growth, mainstream merchant acceptance remains limited.
Even if new payment systems are built using stablecoin technology, you still have to connect to the existing merchant acceptance ecosystem if you want that product to be used,” Sheffield explained, referring to Visa’s global network of sellers.
Visa’s Stablecoin Initiatives
Visa has already launched several stablecoin-related projects, including stablecoin-linked payment cards. In December, the company introduced a pilot program allowing select U.S. banks to settle transactions with Visa using Circle’s USDC stablecoin. However, Sheffield noted that merchant acceptance at scale is still lacking, which means companies offering stablecoin products “need Visa’s products and services more than ever to get real customers using them.”
Visa’s stablecoin settlement volumes have reached an annualized run rate of US$4.5 billion, a small fraction compared to Visa’s US$14.2 trillion annual payments volume. Still, Sheffield emphasized that growth is accelerating:
This is growing significantly month over month. We’re seeing demand, and it’s mostly from stablecoin-linked card providers.
Banks Enter the Stablecoin Race
Major banks, including Goldman Sachs, UBS, and Citi, have signaled interest in launching their own stablecoins, despite concerns that these tokens could disrupt traditional banking’s role in global payment flows. In Europe, banks such as ING and UniCredit have formed a consortium to develop a euro-pegged stablecoin, aiming to counter U.S. dominance in digital payments.
Sheffield welcomed these developments:
I think the stablecoin story shouldn’t just be about dollars. Euro-backed stablecoins are exciting and represent a broader global opportunity.
The stablecoin market has grown to US$270 billion in circulation, more than double the US$120 billion recorded two years ago, according to data from Visa and blockchain analytics firm Allium Labs. However, analysts at JPMorgan caution that the idea of stablecoins replacing traditional money remains far from reality.
Visa’s research shows that of US$47 trillion in stablecoin transaction volume recorded on blockchain, only US$10.4 trillion qualifies as “adjusted” volume—excluding high-frequency trading and non-payment activities.
