Visa is expanding its stablecoin payment pilot program and enhancing collaboration with Bridge to bring stablecoin-linked cards to a global scale, aiming to integrate stablecoins deeper into Visa's payment network.
This move shows that stablecoins are not only limited to crypto wallets or DeFi but are being tested as a payment and settlement option within traditional card infrastructure, from card issuance to the settlement process among participating parties.
MAIN CONTENT
Bridge is pushing the Visa stablecoin-linked card program, aiming for deployment in over 100 countries by the end of 2026.
Visa is expanding the stablecoin settlement pilot, allowing some card transactions to be reconciled on-chain through supported blockchain networks.
The initiative is still in the pilot phase, aimed at adding settlement options rather than completely replacing fiat infrastructure.
Visa's stablecoin-linked card is expanding its global usage.
Bridge helps businesses and fintechs issue Visa cards that are 'backed' by stablecoins, allowing users to spend stablecoin balances at Visa-accepting locations without needing to convert to fiat beforehand.
Bridge provides the infrastructure for issuers to deploy cards, while users can make everyday purchases using stablecoins at Visa-accepting locations. Crypto platforms like Phantom and MetaMask have issued cards, allowing users to pay directly from stablecoin balances.
Currently, the card is operating in 18 countries and is expected to expand to Europe, Asia-Pacific, Africa, and the Middle East by the end of the year. The network can be used at over 175 million points of sale worldwide, according to Visa.
The expansion reflects increasing demand for 'bridge' products between blockchain assets and traditional card networks, where a familiar payment experience remains a decisive factor for ordinary users.
In the context of increasing demand for hedging volatility and risk management when trading crypto, some investors are also monitoring derivative markets and liquidity using tools like BingX, especially as stablecoin-related products and card payments may influence cash flow expectations into the ecosystem.
Visa is expanding the stablecoin settlement pilot in an on-chain direction.
Visa is expanding the stablecoin settlement pilot, allowing some partners to reconcile payment obligations using stablecoins through supported blockchain networks, rather than relying solely on fiat rails.
In parallel with the geographic expansion of the card, Visa stated that through Bridge's partnership with Lead Bank, card transactions can now be settled on-chain with Visa on supported blockchain networks.
The goal of the pilot is to enable issuers and transaction acquirers to have additional settlement options using stablecoins, rather than relying entirely on fiat settlement mechanisms.
Visa stated that the program is evaluating 3 directions: (1) stablecoin settlement could increase 'settlement options' for issuers and program managers, (2) operational efficiency benefits from on-chain reconciliation and faster fund transfers, (3) the role of infrastructure providers like Bridge in simplifying blockchain interactions for financial institutions.
"Visa is committed to meeting businesses where they operate, and increasingly that is on-chain."
– Cuy Sheffield, Head of Crypto at Visa, press release
Visa is assessing the ability to support Bridge-issued assets in payment flows.
Visa stated they are considering supporting Bridge-issued assets in the future, to expand settlement 'paths' for partners within the network.
The evaluation focuses on whether Bridge-issued assets can complement Visa's existing network while providing additional options for partners when designing payment flows and reconciliations.
Bridge also positions this partnership as part of a long-term strategy to help businesses integrate stablecoins into their internal 'financial stack', meaning bringing stablecoins from the user experience layer to the operational infrastructure layer.
The initiative is still in the pilot phase and has not replaced fiat settlement.
Despite expanding the scope, Visa's stablecoin settlement program remains a pilot to test flexibility and operational efficiency, not a plan to completely replace the rails of fiat money.
Visa emphasizes that the focus is on testing 'settlement flexibility' and 'operational efficiency', rather than converting the entire system to stablecoin settlement. This implies that stablecoins are being introduced as an additional option, applicable based on market, partners, or specific operational needs.
Overall, the move indicates that major payment networks are integrating stablecoins in a practical direction: starting with pilot programs, gradually expanding scope, and prioritizing compatibility with existing processes before considering deeper structural changes.
Frequently Asked Questions
How does Visa's stablecoin-linked card work?
Bridge allows the issuance of Visa cards backed by stablecoins, enabling users to spend stablecoin balances for everyday purchases at Visa-accepting locations, instead of converting to fiat before payment.
Will Visa's stablecoin settlement program replace fiat settlement?
No. Visa stated that this is still a pilot program, aimed at testing settlement flexibility and operational efficiency, rather than completely replacing fiat settlement rails.
What is Visa evaluating in the on-chain settlement pilot?
Visa is assessing the extent to which additional settlement options can be provided for issuers and program managers, the potential for improved operational efficiency through on-chain reconciliation and faster fund transfers, and Bridge's role in simplifying blockchain interactions for financial institutions.
Source: https://tintucbitcoin.com/visa-mo-rong-thi-diem-bu-tru-stablecoin/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news on the cryptocurrency market and not miss any important information!
$BTC $ETH $BNB $XRP $SOL