Visa Launches Stablecoin Platform Backing Open USD, Adding Pressure on Circle

Visa introduced a new stablecoin platform on Thursday, giving banks, fintech firms, and crypto companies tools to issue, manage, and settle digital dollar payments through its existing payments network.

What the Platform Offers

The Visa Stablecoin Platform allows financial institutions to issue, store, transfer, and redeem stablecoins through a single system managed by Visa. It launched supporting Open USD, a newer stablecoin created by the Open Standard consortium, and includes tools for minting and redeeming tokens along with wallet infrastructure for managing digital assets onchain.

Stablecoins are cryptocurrencies designed to hold a fixed value, usually tied to the US dollar. Unlike bitcoin or ether, they’re widely used for payments, cross-border transfers, and settlement because they combine blockchain speed with price stability.

Built-In Security and Integration Features

Visa said the platform includes Wallet-as-a-Service infrastructure, blockchain connectivity, and security tools such as dual-approval workflows, audit logs, and transfer allow lists. Because it connects directly to Visa’s existing payment network, financial institutions can add stablecoins into treasury management, settlement, and payment products without overhauling their current systems.

Jack Forestell, Visa’s chief product and strategy officer, said stablecoins are creating a new layer of programmable money, but for most institutions, the real challenge isn’t understanding the concept, it’s handling the operational side of actually using it.

Part of a Broader Digital Asset Strategy

This launch builds on Visa’s existing digital asset efforts, which already include stablecoin settlement support for select partners, crypto-linked card programs, and blockchain-based cross-border payment tools.

Rising Competition Pressures Circle

The announcement lands amid intensifying competition in the stablecoin space. Open Standard, the group behind Open USD, counts Visa, BlackRock, Alphabet, and Coinbase among its backers. The project is aiming to attract banks, payment companies, and crypto exchanges by removing minting and redemption fees and returning nearly all reserve income back to its distribution partners, a model that could shift stablecoin economics away from issuers and toward distributors.

This competitive shift has already affected Circle, the company behind USDC, the world’s second-largest stablecoin behind Tether’s USDT. Circle’s shares fell about 5% on Thursday and have remained under pressure since Open Standard’s launch, reflecting investor concern that new revenue-sharing models could cut into the profitability of established stablecoin issuers.