Visa stablecoin spending big pump 4 times: $140 billion in liquidity, launching 130 card programs

Visa CEO Ryan McInerney announced an increase in support for four types of stablecoins, with Visa card spending linked to stablecoins rising 4 times compared to the same period last year in the fourth quarter. Visa has facilitated over $140 billion in Crypto Assets and stablecoin transactions and has more than 130 card programs linked to stablecoins in over 40 countries.

Visa Stablecoin Strategy: Four Chains and Four Coins Dual Currency System

Visa CEO Ryan McInerney stated: “We are increasing support for four stablecoins that operate on four distinct blockchains, representing two currencies that we can accept and convert into over 25 traditional fiat currencies.” Although McInerney did not specify which four stablecoins and which four blockchains, this statement marks a significant expansion of Visa's stablecoin strategy.

From a technical architecture perspective, Visa's choice to support multiple blockchains rather than a single chain demonstrates its emphasis on blockchain interoperability and diversified risk management. The mainstream blockchains currently on the market include Ethereum, Solana, Polygon, and Arbitrum, while the mainstream stablecoins include USDC, USDT, DAI, and PYUSD. Visa's multi-chain strategy ensures that even if a certain chain encounters technical issues or network congestion, its stablecoin payment services can continue to operate through other chains.

The phrase “representing two currencies” is particularly worth noting. Currently, the global stablecoin market is dominated by US dollar stablecoins, with a combined market capitalization of over 200 billion USD for USDC and USDT. However, the “two currencies” mentioned by Visa suggests that it may support another fiat stablecoin besides the US dollar, which could be the euro, pound sterling, or other major currencies. This multi-currency strategy is crucial for global payment giants, as it can reduce foreign exchange conversion costs and improve the efficiency of cross-border payments.

“Can be accepted and converted into over 25 traditional fiat currencies” showcases the powerful conversion capabilities of Visa's stablecoin infrastructure. This means users can make payments using stablecoins, while merchants can choose to receive their local currencies, with Visa completing the instant conversion in between. This flexibility is a key competitive advantage for traditional financial institutions entering the stablecoin space, as it eliminates the technical barrier for merchants and users to understand and manage Crypto Assets.

Quarterly rise 400%: Visa stablecoin payment explosive growth

McInerney emphasized that “in the fourth quarter, spending on Visa cards linked to stablecoins increased fourfold compared to the same period last year.” This 400% annual growth rate far exceeds the growth rate of Visa's traditional payment business, indicating that stablecoin payments are transitioning from niche applications to mainstream adoption. Although Visa did not disclose the specific amount of stablecoin payments, this growth rate suggests that the business has already reached a considerable scale.

Visa cards linked to stablecoins are typically issued by cryptocurrency exchanges or wallet service providers, allowing users to directly use their held stablecoins for everyday purchases. Major CEXs have issued cryptocurrency cards in collaboration with Visa. When users make purchases, the card automatically converts stablecoins into the fiat currency accepted by the merchant, and the entire process is transparent to the merchant, just like a regular Visa card transaction.

There are several driving factors behind this rapid rise. First, the adoption rate of stablecoins is rapidly increasing, especially in the fields of cross-border payments and remittances. Second, the improvement of the regulatory environment has reduced the risks for financial institutions participating in stablecoin business. The United States has made significant progress in stablecoin regulation, providing more regulatory certainty for tokens pegged to the US dollar. Third, the maturity of technological infrastructure has brought the user experience of stablecoin payments close to that of traditional payment cards.

From a more macro perspective, this rise reflects the accelerating integration of digital payments and Crypto Assets. Traditionally, Crypto Assets and fiat payments have been two separate worlds, but stablecoins are breaking down this barrier as a bridge. Visa, as one of the largest payment networks globally, is experiencing rapid growth in its stablecoin business, which will attract more financial institutions and merchants to accept stablecoin payments.

140 billion USD traffic and 130 global programs

McInerney also stated on Tuesday that since 2020, Visa has “facilitated over $140 billion in Crypto Assets and stablecoin flows.” He further added that this includes users purchasing over $100 billion in Crypto Assets and stablecoin assets using Visa credentials. These figures demonstrate Visa's significant position in the encryption ecosystem, as it is not only a payment network but also a key infrastructure connecting traditional finance with digital assets.

The total flow of 140 billion USD includes two main parts: stablecoin payments and Crypto Assets purchases. Of this, 100 billion USD is used for purchasing Crypto Assets, which means about 40 billion USD is used for actual stablecoin payments and transfers. This ratio reflects the current usage pattern of the Crypto market: most of the funds flow into investment and trading rather than everyday payments. However, with the rapid growth of stablecoin payments (quarterly rise of 400%), this ratio may change significantly in the coming years.

McInerney stated in a conference call: “We currently have over 130 issuer programs linked to stablecoins across more than 40 countries.” This global layout shows that Visa's stablecoin strategy has transitioned from the pilot phase to the scaled deployment phase. The 130 issuer programs mean that there are more than 3 programs on average for each participating country, indicating that market competition has become quite intense.

Visa stablecoin ecosystem key data:

140 billion USD: Total crypto and stablecoin flow facilitated since 2020

100 billion USD: Total amount of user purchases of Crypto Assets

400%: Year-over-year growth rate of stablecoin card spending in the fourth quarter

130+: Number of global stablecoin issuance programs

40+: Number of countries covered

25+: Number of convertible fiat currencies

Bank Issued Stablecoin and Cross-Border Payment Innovation

The CEO of Visa also pointed out that his company has begun allowing banks to mint and burn their own stablecoins. This is a revolutionary development as it expands the issuance rights of stablecoins from Crypto Assets native companies to traditional banks. When banks can issue their own stablecoins, they can provide customers with digital currencies that are fully compliant, insured, and seamlessly integrated with existing bank accounts.

Bank-issued stablecoins are fundamentally different from those issued by companies like Circle or Tether. Bank stablecoins are typically backed by customer deposits on a 1:1 basis and are subject to strict banking regulations. This model excels in regulatory certainty, capital protection, and risk management compared to stablecoins issued by private companies. The infrastructure provided by Visa enables banks to easily mint (create new stablecoins) and burn (redeem stablecoins for fiat currency) tokens, managing the supply of stablecoins.

Like many other traditional financial institutions and payment companies, Visa believes that the potential of stablecoins is growing, especially after the United States launched regulatory certainty related to tokens pegged to the dollar. In the past, Visa has partnered with native crypto companies, but in September of this year, the company launched a pilot project to test the application of stablecoins in cross-border payments, providing businesses with a faster new way to send remittances overseas.

Cross-border payments are one of the most promising application scenarios for stablecoins. Traditional cross-border remittances usually take 3-5 working days, with fees as high as 5%-10%, and involve multiple intermediary banks. In contrast, using stablecoins for cross-border payments can be completed in just a few minutes, with fees typically below 1%, and no intermediaries are required. Visa's pilot project tested the feasibility of this new model, paving the way for large-scale commercial applications.