CoinDesk
Visa introduced the Visa Stablecoin Platform (VSP) on Thursday, an enterprise service that lets banks, fintechs and crypto firms 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 bundles wallet infrastructure, minting and redemption tools, and direct connectivity to Visa's existing payment network.
Jack Forestell, Visa's chief product and strategy officer, framed the launch as an operational fix rather than a conceptual one. "Stablecoins are opening up a new layer of programmable money, but for most institutions the hard part isn't the concept, it's the operational reality," he said. VSP includes Wallet-as-a-Service infrastructure, dual-approval workflows, audit logs and transfer allow lists, so institutions can layer stablecoins onto treasury, settlement and card products without ripping out legacy systems.
Why it matters
The launch lands Visa squarely in the stablecoin distribution layer, and the consortium behind Open USD carries weight: Visa, BlackRock, Alphabet and Coinbase all back the project. The economic model is the real differentiator. Open Standard eliminates minting and redemption fees and returns nearly all reserve income to distribution partners, a structure designed to pull economics away from issuers and toward the companies that route volume. If that model gains traction, it reframes who captures the value in stablecoins, and it puts pressure on the issuer-centric model that has defined the market since Tether and Circle established the template.
Market impact
Circle (CRCL) felt the pressure immediately, with shares down roughly 5% on Thursday as investors digested a credible new distribution-side competitor. USDC remains the world's second-largest stablecoin behind Tether's USDT, but Circle's stock has been under pressure since Open Standard was first unveiled, reflecting concern that revenue-sharing models could erode issuer economics.
Frequently asked questions
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What is the Visa Stablecoin Platform (VSP)?
VSP is an enterprise service launched on Thursday that lets banks, fintechs and crypto firms issue, store, transfer and redeem stablecoins through a single Visa-managed system. It launched with support for Open USD and includes wallet infrastructure, minting and redemption tools, and direct connectivity to Visa's…
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What is Open USD and who backs it?
Open USD (OpenUSD) is a stablecoin from Open Standard, a consortium backed by Visa, BlackRock, Alphabet and Coinbase. The project eliminates minting and redemption fees and returns nearly all reserve income to distribution partners.
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Why did Circle shares drop after the Visa announcement?
Circle (CRCL) shares fell about 5% on Thursday as investors digested a credible new distribution-side competitor. Open USD's revenue-sharing model returns most reserve income to distributors, a structural pressure on the issuer-centric economics that have defined USDC.
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How does VSP differ from Visa's existing crypto services?
VSP bundles wallet infrastructure, minting and redemption tools, and payment network connectivity into a single managed platform. Visa already supports stablecoin settlement for select partners and offers crypto-linked card programs, but VSP is the first end-to-end issuance and management stack from Visa itself.
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What does this mean for the broader stablecoin market?
The launch signals that stablecoins are migrating from a crypto-rail niche into core payments infrastructure. With major TradFi players backing distribution-side economics, the value capture in stablecoins is shifting from issuers toward the platforms that route volume.
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