Visa Revolutionizes Stablecoin Settlement with PYUSD, USDG, and EURC on Avalanche and Stellar
Visa is making waves in the cryptocurrency world by expanding its stablecoin settlement infrastructure to include PYUSD, USDG, and EURC, while adding support for Avalanche and Stellar blockchains. This bold move signals a major step forward in the integration of digital currencies into global payment systems.
Visa’s Stablecoin Settlement Expansion: What You Need to Know
Visa’s latest initiative builds on its 2021 introduction of USD Coin (USDC) settlement on Ethereum. The company is now adding three new stablecoins to its payment infrastructure:
- PayPal’s PYUSD
- Paxos’ USDG
- Circle’s EURC
This expansion provides merchants and financial institutions with more options for fast, low-cost cross-border transactions.
Why Avalanche and Stellar Matter for Visa’s Blockchain Strategy
Visa’s choice of Avalanche and Stellar as additional supported networks is strategic:
| Blockchain | Key Advantage | Market Position |
|---|---|---|
| Avalanche | High throughput (4,500 TPS) | 22nd by market cap |
| Stellar | Low-cost cross-border payments | 16th by market cap |
These networks complement Visa’s existing support for Ethereum and Solana, creating a robust multi-chain payment infrastructure.
The Growing Importance of Stablecoins in Digital Payments
Stablecoins are becoming increasingly vital in global finance because they offer:
- Price stability pegged to fiat currencies
- Faster settlement times than traditional banking
- Lower transaction costs
- 24/7 availability
Visa’s expansion comes as the U.S. GENIUS Act provides clearer regulatory guidelines for stablecoins, boosting institutional confidence.
What This Means for the Future of Digital Payments
Visa’s move represents a significant validation of blockchain technology in mainstream finance. The company has been actively exploring crypto integration, including:
- April 2024 partnership with Bridge (Stripe) for stablecoin debit cards in Latin America
- Ongoing development of blockchain-based payment solutions
- Commitment to maintaining compliance and security standards
Market Reaction and Looking Ahead
Following the announcement, market responses were mixed:
- AVAX: $22.59 (-2.4%)
- XLM: $0.40 (stable)
- Visa stock: -1.5%
This volatility is typical in crypto markets but underscores the growing influence of traditional financial players in digital asset adoption.
Frequently Asked Questions
Which stablecoins is Visa adding to its settlement system?
Visa is adding PYUSD (PayPal), USDG (Paxos), and EURC (Circle) to its stablecoin settlement options.
What new blockchains does Visa now support?
Visa has expanded its blockchain support to include Avalanche and Stellar, in addition to existing Ethereum and Solana integration.
Why is Visa expanding its stablecoin settlement options?
The expansion aims to provide more flexibility, lower costs, and faster settlement times for global payments while keeping pace with growing institutional adoption of stablecoins.
How does this affect traditional Visa users?
While most consumers won’t see immediate changes, this development paves the way for future crypto-integrated payment products and services from Visa.
What regulatory developments support this expansion?
The U.S. GENIUS Act provides clearer regulatory guidelines for stablecoins, making them more attractive for institutional use.
