Visa backs Open USD with new stablecoin platform as Circle faces fresh competition
Visa has launched a new stablecoin platform to help financial institutions issue and manage stablecoins. The move aims to compete with existing players like Circle by offering integrated blockchain infrastructure.
Why it matters
The entry of major financial institutions into stablecoin infrastructure signals the maturation and institutionalization of digital assets.
The company announced on Thursday that it was launching the Visa Stablecoin Platform (VSP), an enterprise service that allows institutions to issue, store, transfer and redeem stablecoins through a single Visa-managed system. The platform launched with support for Open USD (OpenUSD), a recently introduced stablecoin from Open Standard, and includes tools for minting and redeeming the token along with wallet infrastructure for managing onchain assets.
Stablecoins are cryptocurrencies designed to maintain a fixed value, typically by being pegged to the U.S. dollar. Unlike bitcoin BTC $ 64,467.29 or ether (ETH), they are widely used for payments, cross-border transfers and settlement because they combine blockchain's speed with a relatively stable price.
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