Key Highlights
- Payment company Visa has launched a new Global Stablecoins Advisory Practice for banks worldwide.
- The service provides guidance and implementation support for banks, fintechs, and merchants to adopt stablecoins.
- This initiative includes a $3.5 billion annualized stablecoin settlement run rate.
Visa’s Consulting & Analytics (VCA) division, an advisory entity of a global digital payments company, today announced the official launch of a new Global Stablecoins Advisory Practice. The service aims to offer insights and recommendations to financial institutions, fintech players, merchants, and other businesses to assess the market fit and implementation strategy of stablecoin technology.
According to the official release, the practice aims to assist companies in understanding and coping with the increasing presence of stablecoin infrastructure and evolving regulations. It utilizes VCA’s network of consultants, data scientists, and product specialists in a strategic mix of payments expertise with crypto knowledge.
Services offered in the Stablecoins Advisory Practice include specialized learning programs, such as a course offered in Visa University. Moreover, learning support for stablecoin strategy development, market planning, identification of stablecoin usage capacity, and go-to-market strategy planning is offered.
Carl Rutstein, Visa Consulting & Analytics’s Global Head, commented on the need for such regulation: “Having a comprehensive stablecoins strategy is critical in today’s digital landscape. Clients come to Visa and VCA for guidance because they trust our ability to navigate change, both within payments and beyond. We are proud to help our clients stay agile and competitive as this space evolves at an unprecedented pace.”
Capitalizing on stablecoin market growth
The launch of the practice takes place as the stablecoin market has grown substantially, with a total market capitalization of $318.5 billion. Visa noted an incline in settlement volume using stablecoins, with an annualized rate of $3.5 billion as of November 30.
This development marks an expansion of Visa’s efforts to incorporate stablecoins and blockchain technology into more advanced payment systems. Visa started testing stablecoin payments using USDC in 2023 and was among the first major payment systems to do so. It now facilitates over 130 card issuing programs linked to stablecoins in over 40 countries.
Some institutions have already placed their involvement in this practice. According to Matt Freeman, Senior Vice President of Navy Federal Credit Union, this practice holds a benefit for them when he stated, “Putting our members first has always been our mission, and we’re committed to exploring innovations that strengthen financial health and convenience for those we serve.”
He added, “Stablecoins may represent an opportunity to enhance speed and lower cost in payments, so with the support of Visa, we are evaluating how this technology could fit into our broader strategy to deliver meaningful value to our 15 million members worldwide.”
Visa’s role in the advisory
Anthony Sharett, President of Pathward, emphasized another distinct asset offered by the advisory service: “Visa Consulting & Analytics brings together Visa’s scale, expertise and specialized consultants to offer a unique service, and Pathward appreciates the invitation to be one of the first banks to explore this work with them. Stablecoins could provide innovative solutions for the financial services sector, and Visa’s team delivered impressive work, insights and actionable recommendations for businesses exploring them.”
Lauren Morrison, Vice President of Payments Products at VyStar, also commented on the benefit of consulting focus: “Working with Visa Consulting & Analytics gave VyStar access to Visa’s scale, crypto expertise, and specialized consulting talent… VCA team provided practical insights and tailored recommendations that helped us deepen our understanding of the stablecoin landscape and its potential relevance to our members. This engagement allowed us to explore opportunities thoughtfully and shape an informed strategy.”
Alignment with recent developments
The launch of this advisory service reflects Visa’s expectations of increased participation of stablecoins in commerce and financial services. Through this service, Visa is poised to help clients take advantage of new opportunities offered by stablecoins. The payment giant’s latest advisory practice is in line with a series of major moves to incorporate digital currencies into the global payment sector.
Some of these include a September pilot launch, which allowed financial institutions to transact using stablecoins (USDC/EURC) through Visa Direct in a real-time cross-border payment system in a way that did not take into consideration time zone differences.
A November pilot took this a step further to include direct payments in stablecoins to gig economy workers and content creators. Visa has also increased support for stablecoins in new blockchain platforms, making them exchangeable with over 25 forms of traditional fiat currencies.
These developments indicate Visa’s continuous efforts toward evolving the payment pipeline and utilizing digital currencies for optimizing speed and efficiency in cross-border money flows.
Also Read: RBI Deputy Governor: Crypto & Stablecoins are Threat to Monetary Stability
