Visa Leaps into Stablecoins with New Platform and Lending Rail

Payment giant Visa has made significant strides in embracing stablecoins, a move that is gaining traction in the crypto space. In July, Visa introduced the Visa Stablecoin Platform (VSP), a plug-and-play toolkit for traditional banks and fintechs to manage stablecoins.

The platform allows banks to hold, move, and settle stablecoins using enterprise-grade security tools they're already familiar with. Initially, the platform will support Open USD and USDC coins later this year.

Visa has also introduced an on-chain lending rail, pairing real-time settlement data with smart contracts. This enables blockchain lenders to extend short-term credit based on live settlement performance. The early test case involves Credit Coop, a platform financing stablecoin-linked card programs that have supported over $2.5 billion in cumulative settlement financing since 2023.

Visa's stablecoin ambitions are growing rapidly, with over 160 stablecoin-linked card programs live globally and a significant increase in stablecoin-linked payment volume year-over-year.