Home Visa Launches Stablecoin Platform Backing Open USD As Competition With Circle Intensifies

Visa Launches Stablecoin Platform Backing Open USD As Competition With Circle Intensifies

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Visa Launches Stablecoin Platform Backing Open USD As Competition With Circle Intensifies
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Visa has launched a new platform to help banks, fintechs, and crypto firms issue, manage, and use stablecoins, expanding its role in blockchain payments. The Visa Stablecoin Platform (VSP) starts with support for Open USD (OpenUSD), a new stablecoin backed by the Open Standard consortium. This launch comes as competition in the stablecoin market heats up, with Open USD challenging established players like Circle’s USDC by offering a new revenue-sharing model for financial institutions.

The new platform lets institutions issue, store, transfer, and redeem stablecoins using one Visa-managed system. It also offers wallet infrastructure, blockchain connections, and tools for minting and redeeming Open USD. This helps financial institutions add stablecoins to their payment and treasury operations without changing their current systems.

Visa said the platform has strong security features like dual-approval workflows, audit logs, and transfer allow lists. By adding these to its global payments network, Visa wants to make it easier for institutions to use blockchain-based payment systems.

Jack Forestell, Visa’s Chief Product and Strategy Officer, said that for many organizations, the main challenge is not understanding stablecoins, but handling the complex operations needed to use them securely and at scale.

Stablecoins are digital assets usually tied to the US dollar or another currency. They let users enjoy the speed of blockchain without the price swings of cryptocurrencies like Bitcoin or Ether. Stablecoins are now widely used for cross-border payments, settlements, and treasury management.

This launch also supports Visa’s wider digital asset strategy. Visa already handles stablecoin settlements for some partners, runs crypto-linked card programs, and has expanded its blockchain-based cross-border payment services in recent years.

Competition has grown with the launch of Open Standard, backed by Visa, BlackRock, Alphabet, and Coinbase. The group aims to attract banks, fintechs, and crypto exchanges by removing minting and redemption fees and sharing most reserve income with partners.

This model has put more pressure on Circle, which issues USDC, the world’s second-largest stablecoin after Tether’s USDT. Investors worry that new revenue-sharing models could lower Circle’s future earnings, which affected the company’s shares after Open Standard launched.

As more financial institutions look into blockchain payments, Visa is positioning itself as the main link between traditional finance and digital currencies. The launch of the Visa Stablecoin Platform shows that stablecoins are becoming a bigger part of mainstream global payments, not just the crypto industry.

 

 

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Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

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