Payment processing giant Visa announced it will expand its settlement platform to include three additional stablecoins and two new blockchain networks. The company will now support PayPal's PYUSD, Circle's USDC, and the euro-backed EURC alongside the Stellar and Avalanche blockchains.
What to Know:
- Visa will integrate PayPal's PYUSD and Circle's USDC stablecoins into its settlement platform alongside euro-backed EURC
- The expansion includes support for Stellar and Avalanche blockchains, joining existing Ethereum and Solana networks
- Corporate finance leaders report stablecoin transfers of $10-30 million can complete in 4-8 hours versus 3-5 business days for traditional transfers
Strategic Expansion Into Digital Assets
The July 31 announcement represents Visa's commitment to building what company executives describe as a multicoin and multichain infrastructure. Rubail Birwadker, Visa's global head of growth products and strategic partnerships, outlined the company's rationale for the expansion.
"We believe that when stablecoins are trusted, scalable, and interoperable, they can fundamentally transform how money moves around the world," Birwadker said in the press release.
The integration occurs through Visa's collaboration with Paxos, which enables the addition of Global Dollar and PayPal USD to the platform. Previously, Visa's settlement system supported Ethereum and Solana networks, but the new expansion adds Stellar and Avalanche blockchains to provide partners with more settlement options.
The enhanced infrastructure allows transactions in both USD-backed and EUR-backed stablecoins. This development gives Visa's corporate clients additional flexibility in their treasury operations and cross-border payment processing.
Regulatory Environment Shifts Toward Digital Assets
Recent policy developments have created a more favorable environment for stablecoin adoption in corporate finance. The White House issued a report addressing digital asset policy that specifically warns against rejecting stablecoin integration.
According to the administration's document, failure to adopt stablecoins could threaten the US dollar's position in global commerce. The report recommends that banking regulators implement technology-neutral risk frameworks rather than maintaining restrictive policies toward blockchain-based financial services.
The newly signed GENIUS Act has further increased institutional interest in dollar-pegged cryptocurrencies. These legislative changes have reduced regulatory uncertainty that previously limited corporate engagement with digital assets.
Banking institutions now face less punitive treatment when working with blockchain technologies or digital currencies under the proposed framework adjustments.
Corporate Finance Applications Drive Adoption
Industry executives report significant operational advantages from stablecoin integration in corporate treasury functions. Tanner Taddeo, CEO of Stable Sea, and Brett Turner, CEO of Trovata, have documented improved settlement times and reduced transaction costs.
Taddeo provided specific data on international money transfers, noting that moving $10 million to $30 million across borders typically requires three to five business days through traditional banking channels. Stablecoin-based transfers complete the same transactions in four to eight hours.
The speed improvement addresses a major pain point in corporate cash management, particularly for companies with international operations requiring frequent large-value transfers.
Understanding Stablecoins And Blockchain Networks
Stablecoins are digital currencies designed to maintain stable value by backing each token with reserves of traditional assets like US dollars or euros. USDC and PYUSD maintain their value through dollar reserves, while EURC uses euro backing.
Blockchain networks serve as the infrastructure for processing these digital transactions. Ethereum pioneered smart contract functionality, while Solana offers faster transaction processing. Stellar focuses on cross-border payments, and Avalanche provides high-throughput transaction capability.
The multicoin approach allows businesses to choose the most suitable combination of stablecoin and blockchain based on their specific operational requirements, transaction volumes, and geographic needs.
Market Response And Future Implications
The announcement reflects broader institutional acceptance of digital payment infrastructure among traditional financial services companies. Visa's expansion follows similar moves by other payment processors seeking to capture market share in the growing digital asset economy.
Corporate adoption of stablecoins continues accelerating as companies recognize operational benefits including reduced settlement risk, lower fees, and improved cash flow management. The integration of multiple blockchain networks provides redundancy and allows businesses to optimize transaction costs based on network conditions.
Closing Thoughts
Visa's integration of PayPal and Circle stablecoins represents a significant expansion of corporate digital payment infrastructure. The move positions the company to capitalize on growing corporate demand for faster, more efficient international money transfers while supporting both dollar and euro-denominated transactions across multiple blockchain networks.