Visa, one of the biggest payment companies, has announced the addition of Stellar to its blockchain system, giving Stellar increased attention in the field of digital finance.
Stellar Support for Payments
On July 30, Visa announced an upgrade to its system to support stablecoin payments on four major blockchains, including Ethereum, Solana, Avalanche, and now Stellar. This means that companies using Visa’s platform can send and settle payments using stablecoins directly on the Stellar network.
Advantages for Stellar and Competition with XRP
Stellar (XLM) is viewed as a key competitor to XRP in the realm of global payments. Both digital assets aim to make international transfers fast and affordable. However, XRP has faced legal issues in the U.S., while Stellar has now been integrated into Visa’s system, potentially giving Stellar a competitive edge in the market.
Market Reaction to the News
Following the integration announcement, the price of Stellar’s token, XLM, hovered around $0.42, but slightly dipped to $0.4190 within the hour after the announcement. At the time of writing, the token was priced at $0.4116. This shows that the market does not always respond immediately to significant news, indicating that short-term strategies may be prioritized over the long-term value of the partnership.
Visa's support for Stellar emphasizes the growing importance of stablecoins in digital finance, positioning Stellar well for future growth.
