Visa now operates more than 160 stablecoin-linked card programs for issuers and program managers, a figure the company says represents a nearly 200% increase year-over-year. The expansion reflects growing global demand for cryptocurrencies and marks a significant step in the payments giant's integration of digital assets into its core network.
Stablecoins are cryptocurrencies whose value is pegged to another asset, typically the U.S. dollar. To meet the surging demand for stablecoin-linked credit and debit cards, Visa is establishing partnerships that grant new issuers access to smart contracts and onchain credit. In July of this year, the company launched a stablecoin platform designed to facilitate settlements, expand card programs, and assist financial institutions in accessing digital assets.
According to Visa, onchain lending protocols have processed $700 billion U.S. worth of stablecoin-denominated loans during the past six years. As stablecoin-linked cards grow in popularity, Visa stated it will provide more data to companies lending on the blockchain. This includes giving lenders and card issuers greater insight into the financial performance of digital assets.
The move places Visa in direct competition with Archrival Mastercard, which is also investing heavily in stablecoins. Mastercard maintains its own platform for dealing in the cryptocurrency, a sector that is gaining popularity for cross-border payments.
Visa stock (NYSE: $V) has risen 8% over the past 12 months to trade at $370.16 U.S. per share.