Visa has said it is exploring how stablecoins can be integrated into its existing global payment systems as part of efforts to maintain its leadership position in the fast-changing digital payments market. The disclosure was made by Visa’s Head of Crypto, Mr. Cuy Sheffield, during an interview where he spoke about growing interest in stablecoins and how they could fit into everyday payments.
Stablecoins are cryptocurrencies that are usually pegged to traditional currencies like the United States dollar. They allow users to move money outside the regular banking system, often faster and at lower cost. Their use has grown rapidly in recent years, led by USDT issued by Tether, a company based in El Salvador, which now has about 187 billion dollars’ worth of tokens in circulation. Despite this growth, stablecoins are still not widely accepted by merchants for daily payments.
Mr. Sheffield explained that even if new payment systems are built using stablecoin technology, they still need to connect to existing merchant networks to be useful. According to him, “you still have to come back and connect to the existing merchant acceptance ecosystem if you want that product to be used.” This ecosystem includes millions of shops, online platforms and service providers that already accept Visa payments globally.
Visa believes this is where it has a strong advantage. The company already operates one of the largest payment acceptance networks in the world. Sheffield said many companies working with stablecoins now realise they need Visa’s products and services to reach real customers and scale their operations. He added that there is currently no merchant acceptance at scale that allows people to freely spend stablecoins the way they spend cash or card payments.
As part of its preparations, Visa has already launched several stablecoin-related initiatives. One of these includes stablecoin-linked payment cards, which allow users to spend stablecoins while merchants receive payment through traditional channels. In December, Visa also started a pilot programme that allows some banks in the United States to settle transactions with Visa using USDC, a stablecoin issued by Circle.
Sheffield noted that Visa’s stablecoin settlement volumes have reached about 4.5 billion dollars on an annualised run rate. While this figure is small compared to the 14.2 trillion dollars in total payment volume Visa processed over the last year, he said the growth rate is encouraging. According to him, the volumes are increasing month after month, driven mainly by stablecoin-linked card providers.
“But this is growing significantly,” Sheffield said. “We’re seeing demand, and it’s mostly this class of stablecoin-linked card providers.” This suggests that while stablecoins are not yet mainstream for payments, they are gradually finding practical use cases within existing financial systems.
Interest in stablecoins is also growing among major global banks. Institutions such as Goldman Sachs, UBS and Citigroup have indicated they are exploring the possibility of issuing their own stablecoins. These discussions follow concerns that stablecoins could weaken the traditional role of commercial banks in global payment flows if left unchecked.
In Europe, several banks are already taking concrete steps. Banks including ING and UniCredit have formed a company aimed at launching a euro-pegged stablecoin. The move is seen as an effort to reduce reliance on dollar-backed digital currencies and counter US dominance in digital payments. Sheffield welcomed this development, saying he is excited about euro-backed stablecoins and believes the stablecoin market should not focus only on the US dollar.
Data from a website jointly run by Visa and blockchain analytics firm Allium Labs shows that there are now more than 270 billion dollars’ worth of stablecoins in circulation globally. This is more than double the roughly 120 billion dollars recorded two years earlier. However, not everyone believes stablecoins will soon replace traditional money.
In a research note, analysts at JPMorgan said the idea of stablecoins fully replacing conventional currencies remains far from reality. They pointed out that while transaction volumes appear large, many of these transactions are not linked to real economic activity.
Visa’s data shows that of the 47 trillion dollars in stablecoin transaction volume recorded on blockchains, only about 10.4 trillion dollars qualifies as “adjusted” volume. Sheffield explained that the adjustment removes transactions linked to high-frequency trading, arbitrage between crypto exchanges and other activities that are not related to payments.
As stablecoins continue to grow, Visa’s strategy appears focused on blending new digital currency technology with its established infrastructure. By doing this, the company hopes to stay relevant as payment habits evolve, while providing a bridge between traditional finance and emerging digital assets.
