Cuy Sheffield, Visa’s head of crypto, told Bloomberg that traditional payments and crypto will converge as the stablecoin market grows to $269 billion, up 62% year over year, and could expand to $2 trillion within 3 years.
Visa says it has passed $200 million in cumulative stablecoin settlement volume and is building tools and bank partnerships to act as a bridge between banks and digital tokens.
The company aims to help issue, settle and manage tokenised money while keeping its core payments network at the centre.
Market growth and current data
Stablecoins have seen strong gains, and their market cap hit $261 billion in July and has continued to rise. As of August 12, the total stands at $271 billion after adding more than $2.6 billion in the past week.
Visa launched its Tokenised Asset Platform in 2024, the platform lets banks and firms issue tokens and handle them on blockchains. Visa says it has grown its stablecoin settlement business.
Also Read: Visa & Mastercard Say Stablecoins Aren’t A Threat As Competition Grows And New Rules Loom
It has also worked with major banks on token issuance and made deals with fintechs around the world. The firm is positioning itself as a connector rather than a rival to stablecoins.
Partnerships and pilots
BBVA in Spain plans a stablecoin on Ethereum using token tools. Visa is also working with Yellow Card Financial to roll out stablecoin payments in 20 African countries.
Circle has teamed with Onafriq to reach a network of 500 wallets and 200 million bank accounts in Africa. These partnerships aim to cut reliance on overseas correspondent banks and reduce fees.
Regulation and the GENIUS Act
The GENIUS Act became law in July and set a federal rule for payment stablecoins. It requires stablecoins to be backed 1:1 by cash or liquid US Treasuries and to report reserves every month.
That clarity helped spark new corporate interest, and companies such as Western Union, Interactive Brokers, and Remitly have started exploring stablecoin use for payments.
Rivals and broader industry moves
Major players are moving fast, like Mastercard struck a deal with Chainlink to let cardholders buy crypto on-chain through a secure fiat conversion.
In November 2024, Stripe launched stablecoin payments in 70 countries and introduced Stablecoin Financial Accounts for businesses in 101 countries.
A few ago, MetaMask planned to roll out a stablecoin called MetaMask USD with Stripe’s infrastructure to reach 30 million monthly users.
Why does Africa matter?
Most intra-African payments still go through banks outside the continent. More than 80% of such transfers use overseas correspondent banks, costing about $5 billion a year in fees.
Stablecoin rails and local token networks promise faster settlements and lower costs. That makes Africa a key market for token-based payment services and for firms building local custody and compliance systems.
Visa wants to be the rails for token payments, as the company can use its global network to give banks and fintechs a secure path to issue, move and settle stablecoins. By doing so, Visa keeps its role as a payments intermediary while adding new services.
The firm hopes to capture settlement volume and to help clients meet local rules on data and money movement.
Potential risks and questions
The push raises questions about custody, reserve audits and trust. Full 1:1 backing and monthly disclosures reduce some risk, but the system still needs robust audits and secure custody.
There is also the matter of interoperability between token standards and existing payment systems. Finally, any rise in token adoption will draw regulatory attention and new rules in different countries.