Visa is stepping deeper into the stablecoin market. On Thursday, the payments company announced the Visa Stablecoin Platform, or VSP, a product built to help banks, fintech companies, and crypto firms roll out stablecoin services more quickly. The first asset supported on the platform is OpenUSD, or OUSD, a move that adds competitive pressure on Circle, the issuer of USDC.
As stablecoins take on a larger role in global payments infrastructure, Visa is continuing to expand its blockchain payments strategy and link traditional finance with digital asset networks.
Visa builds a one-stop platform for institutional stablecoin use
According to the announcement, the Visa Stablecoin Platform is enterprise infrastructure designed around a one-stop model. Institutional clients can use a Visa-managed system to handle stablecoin issuance, custody, transfers, and redemptions. The first release supports OpenUSD from Open Standard and includes built-in minting and redemption tools, along with wallet infrastructure for managing onchain assets.
Visa said the platform uses a Wallet-as-a-Service architecture. It connects with blockchain networks and adds security controls aimed at corporate users, including dual-approval mechanisms, full audit logs, and transfer allowlists.
The platform also integrates with Visa’s existing payments network. That means financial institutions do not need to replace their current systems in order to add stablecoins to treasury management, settlement, and payment products.
Jack Forestell, Visa’s chief product and strategy officer, said: “Stablecoins are ushering in a new era of programmable money. But for most financial institutions, the hardest part has never been understanding the concept — it’s how to put it into practice.”
Part of Visa’s broader digital asset push
The stablecoin platform marks another step in Visa’s digital asset strategy. In recent years, the company has launched several blockchain-related services, including support for partners using stablecoins in transaction settlement, crypto-linked debit card programs, and broader blockchain-based cross-border payments services.
With traditional financial institutions moving faster into digital assets, Visa is strengthening its position in blockchain payments infrastructure.
OpenUSD enters the market with a different business model
OpenUSD, the first stablecoin supported by VSP, has drawn growing market attention. The token is backed by the Open Standard alliance, whose supporters include Visa, BlackRock, Alphabet, and Coinbase.
Open Standard is trying to compete with a different commercial structure than the one used by many existing stablecoins. The model removes minting and redemption fees and returns most reserve income to partners such as banks, payment companies, and exchanges, rather than leaving those profits with the issuer alone.
If that model gains adoption, the economics of the stablecoin market could shift in a meaningful way, with more of the revenue pool moving from issuers to the financial institutions that handle distribution and circulation.
Circle faces sharper competition as investors react
USDC is currently the world’s second-largest stablecoin behind Tether’s USDT. Since Open Standard disclosed its plan, though, investors have raised concerns that the new revenue-sharing structure could weaken the business advantages of existing issuers.
Circle shares, listed under CRCL, fell about 5% on Thursday. The report said that move reflected investor concerns about USDC’s future competitiveness and earnings power.
With Visa now building stablecoin infrastructure directly and OpenUSD offering a more aggressive revenue-sharing approach, competition in the global stablecoin market is moving into a new phase. The convergence of traditional finance and the crypto sector is also continuing to pick up speed.