Payment company Visa has expanded its stablecoin services on its settlement platform by increasing support for Global Dollar (USDG), PayPal USD (PYUSD), Euro Coin (EURC), and two new blockchain networks, Stellar and Avalanche.
This integration allows users to send and receive stablecoin payments through supported blockchain networks or convert balances to traditional fiat currency. Visa announced this in a press release on Thursday.
Visa has long supported Circle's USDC stablecoin, with supported transfer and settlement networks including Ethereum, Solana, and newly added blockchains.
Following the signing of the GENIUS stablecoin bill in the U.S., institutional interest in stablecoins has been increasing, with tech companies, banks, and even large retailers expressing plans to enter the stablecoin market.
Intensified competition in the stablecoin market
Visa faces competition from an increasing number of financial institutions that issue stablecoins or integrate stablecoin services for their clients.
Visa's direct competitor Mastercard is collaborating with crypto companies to integrate crypto payments and has already tokenized 30% of its transactions.
A report in June indicated that retail giant Walmart and tech company Amazon are exploring the possibility of launching their own stablecoins. Both companies are engaged in international business and would benefit from reduced transaction fees and nearly instantaneous cross-border settlements.
Bank of America CEO Brian Moynihan has repeatedly revealed plans to create a stablecoin and equip the bank with stablecoin payment facilities.
Recently, financial services giant JPMorgan partnered with Coinbase to allow customers to link their Chase accounts directly to Coinbase and convert reward points to USDC.
Earlier this year, representatives from Mastercard acknowledged that stablecoins pose a direct threat to the business models of payment processors, categorizing them as disruptive technology.
Noam Hurwitz, the engineering head at payment infrastructure company Alchemy, stated that on-chain stablecoin transaction volume has surpassed that of Visa and Mastercard, becoming the default settlement layer of the internet.
