Visa backs Open USD with new stablecoin platform as Circle faces fresh competition
CoinDesk 2026-07-16 16:14:30
Context: Visa has introduced the Visa Stablecoin Platform, a new service that enables financial institutions to issue, store, and transfer stablecoins, specifically Open USD, through a single managed system. This launch aims to simplify blockchain-based payments and settlement, expanding Visa's push into the sector as competition in the stablecoin market intensifies. The platform combines wallet infrastructure, stablecoin issuance, and Visa's payment network.
Key Facts
- Visa's new platform, the Visa Stablecoin Platform (VSP), allows institutions to issue, store, transfer, and redeem stablecoins through a single Visa-managed system, launching with support for Open USD (OpenUSD) from Open Standard.
- The platform provides Wallet-as-a-Service infrastructure, blockchain connectivity, and security features such as dual-approval workflows, audit logs, and transfer allow lists, and is integrated with Visa's existing payment network.
- Stablecoins are cryptocurrencies designed to maintain a fixed value, typically pegged to the U.S. dollar, and are widely used for payments, cross-border transfers, and settlement due to their speed and relatively stable price.
- Circle shares fell about 5% following Visa's support for Open Standard's Open USD, reflecting investor concerns that new revenue-sharing models could erode the economics of established issuers.
- Open Standard, the consortium behind Open USD, counts Visa, BlackRock, Alphabet, and Coinbase among its backers, and is seeking to attract banks, payment firms, and crypto exchanges by eliminating minting and redemption fees while returning nearly all reserve income to distribution partners.