Stablecoins are cryptocurrencies linked to widely accepted and stable assets like the US dollar (such as USDC and PYUSD) and are increasingly being adopted in traditional fiat payment systems to make settlements more efficient. Their integration is primarily focused on backend transactions involving issuers, acquirers, and merchants, aiming to resolve everyday operational hurdles, such as restricted business hours and cross-border friction. Both Visa and Mastercard are beginning to utilize blockchain technology for faster, around-the-clock settlements, which could lower operating costs and enhance liquidity management. While the United States has been slower to adopt these innovations compared to some international markets, where third-party networks already handle trillions in B2B transactions, progress is beginning. By late 2025, Visa had settled $3.5 billion in stablecoin transactions, indicating an emerging shift towards programmable money (vs fiat) in global commerce.
Let us explain.
Visa’s integration of stablecoins into its settlement processes reflects a strategic step to modernize its treasury and network infrastructure. Issuers and acquirers may complete financial transactions using stablecoins, while maintaining uninterrupted traditional point-of-sale cardholder experiences. Visa primarily utilizes Circle‘s USDC, a fully reserved, dollar-backed token that operates on the Solana blockchain, selected for its efficiency and low transaction costs.
The Breakdown.
Issuers (banks or fintechs issuing cards) and acquirers (entities handling merchant transactions) can now settle their VisaNet obligations in USDC rather than traditional fiat currencies. This involves transferring USDC to Visa’s designated wallet addresses on the blockchain. Initial participants include Cross River Bank and Lead Bank, which have started settling in USDC over the Solana blockchain, often leveraging platforms like Highnote for embedded finance solutions.
Faster, Better, Smarter.
In practice, when a consumer makes a purchase (e.g., swiping a Visa card), the acquirer collects funds from the issuer. Instead of using legacy systems, the issuer transfers USDC via blockchain to Visa (or its custody partners), where obligations are netted, settled, and converted to fiat if necessary for final distribution. Key benefits, include near instant, seven day a week transfers that overcome the limitations of traditional five business day settlements, thereby improving treasury efficiency, liquidity, and resilience during weekends or holidays while reducing capital tie-ups. Visa’s system bridges blockchain with legacy rails for interoperability between digital assets and fiat, supporting automated treasury operations.
Go Big or Go Home.
The Visa Tokenized Asset Platform (VTAP) further enables clients to mint, burn, and transfer stablecoins programmatically, opening broader use cases such as linking stablecoin wallets to Visa cards for spending at over 150 million merchants worldwide. All settlements operate within supervised, compliant frameworks with defined parameters, and Visa provides advisory services, training, and technical support. Currently focused on backend processes, meaning consumers do not need crypto wallets, but eventually Visa will address the front end indicating it will accept merchant PoS transactions in USDC.
A Distributed Approach.
Mastercard, by contrast, pursues a more diversified strategy, supporting multiple stablecoins, including USDC and EURC from Circle, PYUSD from PayPal, USDG from Paxos, and FIUSD from Fiserv, via its Multi-Token Network (MTN). Acquirers and merchants can elect stablecoin settlements, where transactions are netted and fulfilled in chosen stablecoins regardless of the consumer’s payment method (e.g., card or wallet). Mastercard’s global network bridges fiat and crypto: a consumer pays via a stablecoin-linked wallet or traditional card, the acquirer processes it, settlement occurs on supporting blockchains via MTN, and Mastercard handles any necessary conversions before disbursing to merchants in stablecoin or fiat.
One for All and All for One.
Partnerships with Nuvei and Circle, for instance, allow direct USDC receipts for merchants. Benefits include instant cross-border settlements with reduced fees and times (good for B2B), programmable logic for automated payouts, seamless on/off-ramping via Mastercard Move for 24/7 cross-border flows, and immediate liquidity for merchants alongside lower-friction high-volume handling for acquirers, addressing liquidity challenges in emerging markets. Key expansions include end-to-end capabilities launched in April 2025 with OKX and Nuvei for wallet-to-checkout flows, followed by EEMEA rollout in August 2025 with Circle for USDC/EURC settlements starting with partners like Arab Financial Services and Eazy Financial Services. Additional integrations cover Fiserv for FIUSD in card issuance/settlements, PayPal for PYUSD network capabilities, and Thunes for payouts—enabling stablecoin-funded cards and direct merchant settlements. While stablecoins face limitations for everyday retail due to checkout acceptance, Mastercard views them as essential backend infrastructure for payouts and B2B.
The Best is Yet to Come.
In comparison, Visa emphasizes a USDC-focused, blockchain-agnostic model prioritizing speed for issuers in core markets like the US, while Mastercard’s multi-stablecoin, partnership-driven approach fosters wider ecosystem integration, including strong merchant-side capabilities. Both reduce dependence on traditional rails, offering potential 50-70% cost savings in cross-border scenarios and enabling always-on finance. By 2026, these developments could significantly mainstream stablecoins in institutional payments, with ongoing regulatory progress playing a pivotal role in full adoption.
