Visa adds support for three new tokens PYUSD, USDG, and EURC on two blockchains, highlighting the potential to fundamentally change global cash flows.
Visa Inc. has announced a significant expansion of its stablecoin payment capabilities in its latest move to strengthen its position in the digital asset space. The world's leading payment corporation announced on Thursday that its infrastructure now supports three new types of digital tokens along with two additional blockchains, marking an important step in its payment network diversification strategy.
The three new integrated tokens include PayPal's PYUSD, Paxos' USDG, and Circle's EURC. Additionally, customers using Visa's stablecoin services can now transact through the Avalanche and Stellar blockchains, expanding from the previous system that only operated on Ethereum and Solana.
The addition of Avalanche and Stellar demonstrates Visa's commitment to building a multi-chain payment ecosystem. Avalanche, the platform behind the AVAX token, is currently ranked 22nd by market capitalization, providing high-speed transaction processing and low fees. Similarly, Stellar, with its native token XLM ranked 16th in size, is designed specifically for cross-border payments and international remittances.
At the time of the announcement, AVAX was trading at $22.59, down more than 2.4% in the session according to CoinGecko data, while XLM remained steady at $0.40. Visa's stock on the NYSE closed down 1.5%.
The vision for the future of global payments
Rubail Birwadker, Global Director of Growth Products and Strategic Partnerships at Visa, emphasized the revolutionary potential of stablecoins in an official statement. He affirmed, "We believe that when stablecoins achieve reliability, scalability, and cross-chain interoperability, they can fundamentally change how money flows operate globally."
This perspective reflects a shift in the understanding of the role of stablecoins. From a tool primarily serving cryptocurrency traders for quick transfers without relying on traditional banking systems, stablecoins are now attracting interest from many large organizations. Banks, tech giants like Meta and Amazon, and even some U.S. states are exploring the potential of blockchain technology to accelerate payment speeds.
This development comes amid a clearer regulatory landscape. Earlier this month, the GENIUS Act was signed into law, creating the first comprehensive federal legal framework for stablecoins in the U.S. This law establishes requirements for issuers, standards for reserves and audits, as well as clear rules on how to use and trade stablecoins.
Visa's cryptocurrency journey began in 2021 when the company first announced support for USD Coin on the Ethereum network. Since then, the corporation has launched several ambitious initiatives in the digital asset space. Last April, Visa partnered with Bridge from Stripe to issue debit cards linked to stablecoins in several Latin American countries, showcasing its commitment to expanding the practical applications of cryptocurrencies.
