Visa has introduced a new enterprise stablecoin platform designed to help banks, fintech companies, and payment providers manage digital dollars through a single, integrated system.
The new service, called the Visa Stablecoin Platform (VSP), will initially support Open USD, a stablecoin launched by Open Standard in June. Through the platform, institutions can mint, store, transfer, and redeem stablecoins while using Visa’s existing payment infrastructure, security systems, and risk management tools.
Visa says the platform is intended to work alongside traditional payment networks rather than replace them, making it easier for financial institutions to add stablecoin services without rebuilding their existing operations.
In addition to stablecoin management tools, VSP includes Wallet-as-a-Service technology and blockchain connectivity, allowing institutions to handle digital asset transactions through a single operating system.
Visa Chief Product and Strategy Officer Jack Forestell said that while many companies understand the potential of stablecoins, the real challenge is managing them efficiently within large financial organizations. According to him, the new platform gives institutions a centralized way to handle stablecoin operations while benefiting from Visa’s existing infrastructure and controls.
The launch also gives Open USD a major opportunity to expand its reach among institutional users.
Unlike some established stablecoins, Open USD uses a different business model. Open Standard plans to offer fee-free minting and redemption while sharing a large portion of reserve income with participating partners after operating expenses are covered.
This approach has attracted significant support across the financial and crypto industries. More than 140 organizations backed the Open USD initiative when it launched, including major names such as Visa, Mastercard, BlackRock, Coinbase, and other leading companies.
The growing support for Open USD is creating new competition for Circle’s USDC, one of the largest regulated stablecoins in the market.
Investors have been closely watching whether Open USD’s revenue-sharing model could challenge USDC’s position by giving distribution partners a larger share of stablecoin-related earnings. Following the announcement of Open USD, concerns about increased competition contributed to pressure on Circle’s stock price.
Those concerns intensified this week when Mizuho lowered its outlook for Circle and reduced its price target, citing the potential impact of Open USD on Circle’s profit margins and business model.
However, Open USD still faces significant challenges before it can compete directly with USDC at scale. While the project has attracted strong industry backing, it must still build liquidity, gain regulatory approvals, and achieve widespread adoption among businesses and financial institutions.
Visa’s new platform could help accelerate that process by providing a ready-made infrastructure for banks and fintech companies interested in using Open USD.
The launch also highlights Visa’s continued push into digital assets and blockchain-based payments. The company has already processed billions of dollars in stablecoin-related settlements and continues to expand its involvement in the growing digital payments sector.
For the broader stablecoin market, the introduction of the Visa Stablecoin Platform marks another step toward mainstream financial adoption. It provides institutions with a familiar and regulated framework for using digital dollars while increasing competition among stablecoin providers.
As more banks, payment companies, and fintech firms explore stablecoin technology, the key question will be whether Open USD can gain enough adoption through Visa’s ecosystem to challenge the strong market position that USDC has built over the past several years.
