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Visa is expanding its stablecoin settlement capabilities through a new advisory practice and broader support for USDC, positioning itself to capture blockchain-based payment flows as digital dollar volumes grow and US regulations provide clearer operating rules.
The payments giant is integrating stablecoin infrastructure into its existing rails rather than ceding ground to crypto-native networks, according to a market analysis published Thursday by 24/7 Wall Street.
At the center of Visa’s latest growth bet is stablecoin settlement, an approach that integrates blockchain-based dollar tokens into the company’s existing payment infrastructure rather than allowing new crypto-native networks to bypass it. Visa’s crypto leadership has moved to formalize this strategy by launching a Stablecoins Advisory Practice and expanding settlement support for USD Coin (USDC).
The decision follows a surge in activity across stablecoin networks in early 2025, when Tether’s USDT processed as much as 1.5 billion in daily transaction volume during peak settlement periods. While volumes cooled significantly by January 2026 to between 30 million and 40 million daily, the episode demonstrated institutional appetite for blockchain-based settlement rails.
According to the report, “Visa Inc. is doubling down on stablecoin settlement infrastructure as transaction volumes surge across digital dollar networks” — 24/7 Wall Street, market analysis. By embedding stablecoin settlement into its rails, Visa aims to remain central to cross-border payments even as financial institutions explore blockchain alternatives.
Regulation has emerged as a decisive factor behind Visa’s confidence in stablecoin settlement. In July 2025, the United States enacted legislation specifically addressing stablecoins, providing legal clarity around issuance, reserves, and compliance. That framework has reduced uncertainty for major payment companies seeking to operate at scale within digital asset markets.
Prediction markets cited in the analysis assign an 82.5% probability that U.S. dollar–denominated stablecoins will retain more than 99% market share through 2026. This outlook reinforces Visa’s focus on dollar-pegged tokens rather than non-dollar alternatives, aligning blockchain settlement with the company’s traditional strengths in fiat-based payments.
The report notes that “the U.S. enacted stablecoin-specific legislation in July 2025, providing the clarity Visa needs to integrate blockchain settlement at scale” — 24/7 Wall Street, regulatory overview. As a result, stablecoin settlement is increasingly viewed not as an experimental add-on but as a regulated extension of mainstream financial infrastructure.
Visa’s robust financial performance has given it the flexibility to invest aggressively in stablecoin settlement without undermining its core business. In fiscal 2025, the company posted profit margins of 50% and operating margins exceeding 65%, alongside a 52% return on equity.
As stated in the report, “Visa generated 50% profit margins and 65% operating margins in fiscal 2025” — Visa Inc., fiscal disclosures cited by 24/7 Wall Street. These results provide a cushion that allows Visa to pursue emerging technologies while maintaining shareholder returns.
Analysts tracking the company maintain a target price of $398, implying roughly 21% upside from recent trading levels near $332. That optimism reflects expectations that stablecoin settlement could evolve into a high-margin infrastructure business if blockchain transaction volumes continue to scale.
Visa’s emphasis on stablecoin settlement stands in contrast to the mixed fortunes of its competitors. PayPal, despite early crypto exposure, has seen its stock decline about 40% over the past year, while Mastercard has traded largely flat. Analysts suggest that Visa’s focus on the infrastructure layer rather than consumer-facing crypto products may prove more resilient over time.
By targeting settlement fees instead of speculative trading or retail crypto adoption, Visa is positioning itself as a neutral backbone for digital payments. If stablecoins become the dominant mechanism for cross-border transfers, stablecoin settlement could drive incremental revenue without cannibalizing existing card networks.
The analysis concludes that Visa is “bringing stablecoin activity onto its existing rails rather than ceding ground to blockchain networks that could bypass traditional payment infrastructure” — 24/7 Wall Street, industry assessment. That strategy reflects a broader bet that regulated digital dollars and legacy payment systems will converge, rather than compete outright.
As transaction volumes, regulation, and institutional adoption evolve, stablecoin settlement is emerging as a critical test of whether established financial giants like Visa can adapt to blockchain innovation while preserving their central role in global finance.
