Payment company Visa has expanded its stablecoin offerings on its Visa Network (Visa’s blockchain) by adding support for Global Dollar (USDG), PayPal USD (PYUSD), and Euro Coin (EURC), alongside integrating with Stellar and Avalanche blockchains. This enhancement allows users to send and receive stablecoin payments through supported networks or convert balances to traditional fiat currency.

The integration follows Visa’s earlier support for Circle’s USD Coin (USDC), adding to existing networks including Ethereum and Solana.

Institutional Demand Driving Stablecoin Growth

Institutional interest in stablecoins is growing following the passage of the GENIUS stablecoin bill in the United States. Financial institutions, tech firms, and retailers are increasingly signaling intentions to enter this market to capture a share of the expanding asset class.

Related: Trump-linked WLFI invests $10M in Falcon Finance for stablecoin development

Rising Competition for Stablecoin Market Share

Visa faces intensifying competition from financial institutions issuing stablecoins or offering services to clients. These developments represent a significant challenge to traditional financial systems.

Competitor Mastercard has collaborated with crypto firms for payment integration, stating it has already tokenized 30% of its transactions. Industry reports suggest retail giants Walmart and Amazon are exploring their own stablecoin launches to benefit from reduced cross-border transaction fees and faster settlements.

Bank of America CEO Brian Moynihan has repeatedly hinted at developing a stablecoin, while JPMorgan has partnered with Coinbase to enable rewards points conversion to USDC.

According to experts, stablecoin transaction volume has surpassed traditional payment networks like Visa and Mastercard, positioning it as the “default settlement layer” for internet commerce. This shift represents both opportunity and challenge for established financial infrastructure providers.

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