Visa Expands Stablecoin Settlement Capabilities

Visa announced on Thursday an expansion of its stablecoin settlement capabilities, adding support for three more digital tokens and two blockchain networks.

The payments giant revealed that its infrastructure now includes PayPal’s PYUSD, Paxos-issued USDG, and Circle’s EURC. Moreover, clients utilizing Visa’s stablecoin services can also accept these tokens via Avalanche and Stellar, which were not previously supported.

Previously, Visa’s stablecoin services were limited to Ethereum and Solana blockchains.

Avalanche is associated with AVAX, the 22nd largest digital asset by market cap, while Stellar’s native token, XLM, ranks as the industry’s 16th biggest crypto. As of the latest updates, AVAX was trading at $22.59, down more than 2.4%, with XLM remaining steady at $0.40.

NYSE-listed Visa’s stock finished down by 1.5% according to Google Finance.

Rubail Birwadker, Visa’s Global Head of Growth Products and Strategic Partnerships, stated, “We believe that when stablecoins are trusted, scalable, and interoperable, they can fundamentally transform how money moves around the world.”

Stablecoins are cryptocurrencies typically pegged to stable assets like the U.S. dollar to reduce price volatility. Initially, they were used mostly by traders for moving funds without relying on traditional banks. However, their adoption is growing among banks, major corporations—including Meta and Amazon—and even U.S. states for issuing stablecoins to enhance payment processes with blockchain technology.

Earlier this month, the GENIUS Act was signed into law by President Trump, establishing the first comprehensive federal framework for stablecoin issuance and regulation in the U.S. This legislation defines issuer requirements, sets reserve and audit standards, and clarifies how stablecoins can be utilized and traded within financial markets.

In 2021, Visa had already announced support for USD Coin on Ethereum. Since then, the company has launched various crypto-related initiatives, including a partnership with Bridge, a Stripe unit, aimed at providing stablecoin-linked debit cards in Latin America.