Visa launches stablecoin platform with Open USD, pressuring Circle and Coinbase
The payments giant’s new infrastructure product leverages a zero-fee consortium model to capture the growing digital currency market, signaling a direct threat to existing stablecoin issuers.
Visa introduced its new Stablecoin Platform on Thursday, enabling banks and payment processors to issue, manage and settle digital currency transactions directly through its global network. The infrastructure launches with native support for Open USD, a stablecoin backed by the Open Standard consortium of more than 140 firms, including Visa, Mastercard, Stripe, BlackRock, Alphabet and BNY.
The offering features a Wallet-as-a-Service model that handles custody, compliance and transaction management for institutions seeking to avoid building their own infrastructure. Jack Forestell, Visa’s Chief Product and Strategy Officer, stated the product is designed to make stablecoins “as easy to use as any other form of money on the Visa network.”
Financial markets reacted swiftly to the announcement, with shares of Circle falling roughly six percent and Coinbase dropping about four and a half percent. Conversely, Visa’s stock rose approximately two percent, driven by the disruptive pricing model of Open USD. The consortium charges zero mint and redeem fees while returning nearly all reserve income to distribution partners, directly undercutting the established economics of incumbent issuers.
This aggressive move arrives as the global stablecoin market exceeds $310 billion in total circulation, with Morningstar projecting it could approach $1.5 trillion by 2035. The expansion is further enabled by the US GENIUS Act, which established the first federal regulatory framework for stablecoins after being signed into law in July 2025.
Traditional payment networks are increasingly treating blockchain-based settlement as a core business rather than a niche experiment. Mastercard recently acquired stablecoin infrastructure firm BVNK for nearly $2 billion, while PayPal continues to expand its proprietary PYUSD token. Visa’s platform complements its existing stablecoin capabilities, which already achieved a $7 billion annualized run rate in April.
Although the new platform remains in beta testing with select clients, its potential scale is substantial given Visa’s presence in more than 200 countries and territories. The initiative represents a clear signal that legacy payment giants intend to own the foundational stablecoin layer, forcing existing issuers to compete against entrenched distribution networks and superior fee structures.
