Visa (V) has launched a new platform to provide crypto stablecoin services to over 200 million merchants, according to a Thursday press release. The Visa Stablecoin Platform is designed to help financial institutions, fintechs, and crypto natives access stablecoin capabilities through a single Visa-managed environment.
“Stablecoins are opening up a new layer of programmable money, but for most institutions the hard part isn’t the concept; it’s the operational reality,” said Jack Forestell, Chief Product and Strategy Officer, Visa. “With the Visa Stablecoin Platform, we’re giving our clients a single place to mint, move and manage stablecoin operations with the controls, security and network reach they already expect from Visa. It’s how we help them turn interest in stablecoins into real products and real payment flows.”
More on VSP
Per Visa’s press release, the Visa Stablecoin Platform provides direct access to a range of stablecoin capabilities and flows alongside Visa’s network, risk and fraud capabilities, so institutions can move from exploration to implementation with greater confidence. This includes the following:
Built for trust on day one: VSP allows institutions to interact with stablecoin flows with the same security and trust that Visa is known for. Users will have access to features like dual-control approval for workflows, where one user initiates a sensitive action and another authorized user must approve it, comprehensive audit logging, and Wallet-as-a-Service features of secure passkeys and allow lists to control transfers, to help provide the level of security and control they require to operate.
Access to Open USD: VSP integrates seamlessly into the Open Standard, providing institutions with direct access to Open USD alongside Visa’s network services. This gives clients a way to easily mint, burn, manage and transfer Open USD, bringing fiat on-chain and managing flows in an environment they already trust.
Onchain wallet infrastructure: VSP packages the wallet infrastructure, controls, and workflows needed to make stablecoins usable inside real-world treasury, settlement, and product stacks for a range of institutional use cases.
Integration into Visa’s network: VSP is designed to enable connectivity of stablecoins to Visa’s network and tools, allowing users to embed stablecoin capabilities into existing payment flows, treasury operations and settlement processes. For existing Visa clients using Visa’s settlement, treasury, and currency solutions, VSP provides direct interoperability, enabling seamless integration of stablecoins into the workflows and systems they rely on today.
In March, Visa became the first major payments company to join the Canton Network as a Super Validator, a role intended to help banks use stablecoins for payments, settlement and treasury operations on a privacy-focused blockchain network. In April, Visa expanded its stablecoin settlement program by adding Base, Polygon, Canton, Arc, and Tempo, bringing the total number of supported blockchain networks to nine.
Visa (V) Stock Reaction
Shares in Visa (V) stock climbed Thursday following the stablecoin platform announcement. Analysts from Clear Street have also initiated coverage with a Buy rating and a $403 price target, highlighting Visa’s strong financial performance and market position, along with the new stablecoin update.