Visa Unveils Stablecoins Advisory as Market Surpasses $300B — Are Banks Joining the Trend?

Visa has introduced a new "Stablecoins Advisory Practice" as the stablecoin market has surpassed $300 billion. This development coincides with an increased interest from banks and financial institutions in exploring digital dollars.

Key Takeaways

Visa has announced a new "Stablecoins Advisory Practice" amid a stablecoin market that now exceeds $300 billion.
The advisory service aims to assist clients in strategizing the implementation of stablecoins without encouraging undue adoption.
Major financial institutions are increasingly interested in stablecoins, with Visa collaborating with various early clients.
The total stablecoin market capitalization, led by Tether (USDT) and Circle (USDC), reflects growing diversification.
Visa's initiatives in stablecoins are designed to enhance global payment solutions and support regulatory compliance.
A global trend of stablecoin adoption is emerging, supported by institutional partnerships and emerging technologies.

Visa Unveils Stablecoins Advisory as Market Surpasses $300B — Are Banks Joining the Trend?

This initiative is part of a broader trend, as traditional financial entities are becoming more involved with stablecoins following clearer regulatory guidance in the U.S.

Visa Collaborates with Clients on Stablecoin Solutions

Carl Rutstein, the global head of Visa Consulting and Analytics, stated that the advisory practice aims to fulfill client demand rather than promote adoption without basis.

Visa is currently collaborating with several early clients, including Navy Federal Credit Union, VyStar Credit Union, and Pathward, and anticipates expanding this list into the hundreds.

This advisory service encompasses a wide range of areas, including strategy development, technical architecture, operational readiness, and implementation support. Clients will ultimately determine if adopting stablecoins meets the actual needs of their customers.

Stablecoins are unique cryptocurrencies designed to maintain a stable value, usually pegged to the U.S. dollar through reserves. Traditionally used for crypto trading, stablecoins are now increasingly utilized for payments, international transfers, and business-to-business settlements, especially where currency fluctuations or limited access to banking services exist.

As per DefiLlama data, the global market capitalization for stablecoins has surged to $309.85 billion. Tether’s USDT currently leads the market with a 60.10% share and a market cap of $186.23 billion, followed closely by Circle’s USDC, valued at $78.31 billion.

Stablecoin Market Overview

Other stablecoins such as Ethena’s USDe, Sky Dollar, Dai, and PayPal USD account for smaller yet expanding segments of the market, highlighting a diverse range of issuers.

Visa's Enhanced Focus on Global Payments Utilizing Stablecoins

Visa’s latest launch follows a series of stablecoin initiatives undertaken by the company in recent years. In 2023, Visa conducted a pilot for USDC settlements on blockchain networks and now oversees over 130 stablecoin-linked card programs across 40 countries.

Additionally, Visa has begun testing a system enabling businesses to fund cross-border payments using stablecoins, eliminating the need to pre-deposit cash into local accounts.

The company plans to broaden this program by 2026, aiming at banks, remittance companies, and financial institutions that currently depend on expensive correspondent banking systems.

This push has gained momentum due to clearer regulatory frameworks in the U.S., especially after President Donald Trump signed the GENIUS Act in July, which established official guidelines for stablecoin issuance.

In the wake of these developments, numerous financial and payment companies are ramping up their stablecoin initiatives. For instance, PayPal and Mastercard have expanded their digital dollar capabilities, while major institutions like Citigroup, JPMorgan, and Standard Chartered are investigating tokenized settlement and blockchain liquidity solutions.

Global Adoption of Stablecoins on the Rise as Institutions Engage

Visa's advisory launch coincides with the global spread of stablecoin adoption beyond the U.S. In Africa, Visa has partnered with Yellow Card Financial to facilitate stablecoin payments across 20 countries. Additionally, Circle is collaborating with Onafriq to link stablecoins to hundreds of wallets and bank accounts.

Mastercard has also joined forces with Chainlink to enable cardholders to make cryptocurrency purchases on-chain. Furthermore, Sony Bank is set to introduce a regulated dollar-pegged stablecoin for transactions within its digital entertainment ecosystem.

Institutions such as Goldman Sachs, Wells Fargo, McKinsey, Anchorage Digital, and GFT Technologies are already providing advisory, research, or infrastructure services pertaining to stablecoins.

Visa executives have consistently presented stablecoins as complementary to existing payment systems, rather than a rival to them. Earlier this year, Visa’s head of crypto, Cuy Sheffield, emphasized that the future of payments would integrate traditional systems with on-chain settlement, rather than replacing one with the other.