Visa, one of the largest global payment systems, is taking a bigger step towards blockchain by extending its stablecoin settlement pilot program to include other blockchain networks such as Polygon, Base, Canton Network, Arc, and Tempo. This shows how much Visa is interested in exploring how digital currencies can affect global payment systems.
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Visa Expands Stablecoin Network Rapidly
Visa first launched its stablecoin pilot in 2023, enabling certain partners to clear transactions through stablecoins rather than having to use conventional bank systems. With the recent addition of the new blockchain networks to the program, Visa now offers several other blockchains, including Ethereum, Solana, Stellar, and Avalanche.
As mentioned by Visa, the scheme has been able to reach an annualized transaction value of around $7 billion in a very short time, and the rate at which its growth can be observed stands at around 50% each quarter. This, however, pales in comparison to the huge legacy network that Visa operates.
This can be done with the aim of testing whether stablecoins can make payments faster, more efficient, and 24/7. In addition, payments made across borders have traditionally been inefficient and costly through traditional payment methods.
It is also worth noting partnership approach to realize this vision. For instance, it has enhanced its partnership with Stripe via its subsidiary Bridge in order to roll out a global card product linked to stablecoin accounts.
Visa, Mastercard Compete in Blockchain Payments
Competition within this market is growing rapidly. Competing payments player Mastercard has launched various stablecoin projects, such as allowing users in the United States to make payments using stablecoins via wallets such as MetaMask.
At the same time, financial technology firm Modern Treasury just partnered with Polygon in order to facilitate easier transactions for businesses using stablecoins. It has also bolstered itself by buying Beam, another payment service provider.
Regulation is also beginning to dictate where the market is headed. In the US, for example, the implementation of the GENIUS Act has clarified how stablecoins can be used, prompting companies to consider adopting stablecoins in their operations. Yet other areas of policy, such as yield-bearing stablecoins, remain undecided.
At the same time, the market for stablecoins is itself expanding rapidly. The figures published by DeFiLlama demonstrate that the overall volume of stablecoins has surpassed the $320 billion mark.
While fintechs and cryptocurrency ventures race towards the next iteration of global payment systems, the latest expansion of services by Visa demonstrates that established players are far from idle. On the contrary, they have started exploring the possibilities of using blockchain technology for payments.
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