Visa, the second-largest payment processing company, has announced an expansion of its support for stablecoins and blockchains to adapt to modern market demands.
Expansion of Stablecoin Support
In a press release, Visa announced the addition of two new USD-backed stablecoins and the inclusion of new blockchains. The company will now support the Global Dollar (USDG) and PayPal USD (PYUSD), as well as the euro-backed EURC. In addition to Ethereum and Solana, support will be extended to the Stellar and Avalanche blockchains.
Increasing Popularity of Stablecoins
Stablecoins are becoming a staple in institutional cryptocurrency adoption. Their market cap has doubled since the start of last year, reaching over $265 billion. According to Ivy Analytics, 90% of businesses will have tested or used stablecoins by 2025.
Impact on Financial Services Market
In this context, major U.S. banks like JPMorgan, Goldman Sachs, and Citi have expressed interest in incorporating stablecoins into their everyday operations. The recently passed GENIUS Act is an additional step towards regulating the use of stablecoins, providing assurance to corporations and investors.
Visa's expansion of stablecoin and blockchain support highlights a trend toward incorporating cryptocurrencies into traditional financial services, potentially changing payment methods and attracting more investors.
