Visa has launched a stablecoin platform aimed at banks, financial institutions and fintech companies, giving them a way to issue and manage stablecoins while plugging those assets into Visa’s existing payments network. The platform’s core functions include stablecoin minting, transfer and management, along with integration into payment, settlement and money movement systems. Its target footprint covers more than 200 million merchants and 15,000 financial institutions.
According to an analysis by Lanhu Biji published by PANews, Visa’s move into stablecoin infrastructure is not about replacing stablecoins. The argument is that Visa wants to absorb them into its network and collect value from the growth in transaction activity. As stablecoin usage expands, Visa would process more of that flow and generate revenue from it. The commentary says this could help accelerate the next phase of stablecoin adoption and broaden the market’s use cases, even as concentration among top issuers may decline and competition shifts toward distribution, merchant access and compliance.
What the platform is built to do
The article breaks Visa’s platform into two main sets of functions:
- minting, movement and management of stablecoins;
- tools for banks and financial firms to integrate stablecoins into existing payment, settlement and fund transfer systems.
By using Visa’s existing network, the platform is intended to bring those capabilities to more than 200 million merchants and 15,000 financial institutions.
What it could mean for USDC
Lanhu Biji describes the near-term effect on USDC, issued by Circle, as positive. One reason is that Visa directly supports USDC settlement and integration, which gives USDC an early advantage on the platform.
That edge may not last unchanged. Over a longer period, the article says USDC could face stronger competition from alliance-backed tokens such as OUSD and from stablecoins issued directly by banks, both of which could pull away part of the institutional and payments business. Circle still has strengths in compliance and existing integrations, but the model of a single issuer earning reserve interest on its own may come under pressure if alliance structures share revenue with distribution partners.
What it could mean for USDT
The piece says the impact on USDT, issued by Tether, may be larger. USDT has been driven by trading activity and demand in emerging markets, while traditional financial networks such as Visa are presented as more likely to favor options seen as more compliant and transparent, including USDC and OUSD.
Under that view, USDT would remain strong in crypto-native use cases. In merchant payments and institutional settlement, though, its share could come under pressure.
What it could mean for Ethereum
On Ethereum, the conclusion in the article is neutral to slightly positive. The main benefit would come indirectly through faster stablecoin adoption.
Lanhu Biji writes that Visa has close ties with the Ethereum ecosystem and that the new platform could channel more traditional capital into the ETH network in stablecoin form. Over a longer horizon, if stablecoins become more mainstream, more institutions and merchants may move on-chain, raising demand for ETH as a settlement layer and Layer 1, especially after Layer 2 expansion. The article also says Visa’s earlier data showed stablecoin transaction volume was lifting on-chain activity.
At the same time, the piece notes that Visa’s stablecoin platform is expected to support multiple chains rather than Ethereum alone. Even so, it argues that Ethereum, as the most mature and most decentralized chain, is likely to remain a preferred option for institutions using compliant stablecoins.
Bottom line from the commentary
Lanhu Biji’s view is that Visa is not trying to “wipe out” USDC or USDT. Instead, it is trying to “collect rent” while enlarging the market. In that framing, the long-term effect is positive for the broader stablecoin ecosystem, but business models built mainly on earning reserve interest from issuance may face growing pressure.
The article was published by PANews as commentary from columnist Lanhu Biji. It does not represent PANews’ own position and does not constitute investment advice.