Visa stablecoin push knocks Circle down 6%

Visa on Thursday launched the Visa Stablecoin Platform, a new infrastructure product for banks and payment processors to issue, manage, and settle stablecoin transactions through Visa’s network. The announcement hit the market immediately: Circle shares fell roughly 6%, Coinbase dropped about 4.5%, and Visa rose about 2%, according to Bloomberg.

The platform launches with native support for Open USD, a stablecoin backed by a consortium of more than 140 firms including Visa, Mastercard, Stripe, and BlackRock. Visa said the product is meant to make stablecoins easier for institutions to use inside its existing payments rails.

“as easy to use as any other form of money on the Visa network”

Visa is also bundling a Wallet-as-a-Service product that handles custody, compliance, and transaction management for institutions that want exposure to stablecoins without building their own stack. Security features include:

• dual-control approval workflows
• audit logging
• passkey authentication
• configurable allow lists for counterparties

Open USD pricing puts pressure on rivals

Part of the sharp reaction appears tied to Open USD’s economics. The stablecoin charges zero mint and redeem fees and returns nearly all reserve income to distribution partners, a model the source says directly undercuts Circle’s business.

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The broader market is getting large enough to matter. Stablecoins now account for more than $310 billion in total circulation, and Morningstar projects that figure could reach nearly $1.5 trillion by 2035. The regulatory backdrop has also shifted: the US GENIUS Act, signed into law in July 2025, created the first federal framework for stablecoins in the US.

Earlier this month, the Open Standard consortium behind Open USD launched with backing from Alphabet, BNY, Coinbase, and dozens of other companies.

Beta rollout as card networks deepen crypto bets

Visa said the platform is currently in beta testing with select clients and will expand in the coming months, though it has not disclosed how many are involved or when general availability will begin.

The company said the new platform will complement its existing stablecoin efforts, including settlement infrastructure that reached a $7 billion annualized run rate in April and stablecoin-linked card programs. The move echoes Mastercard’s acquisition of stablecoin infrastructure company BVNK for nearly $2 billion earlier this year, while PayPal has also been expanding PYUSD.

With transactions spanning more than 200 countries and territories, Visa is making a much more direct play for the stablecoin layer itself — not just the card rails around it.