Visa Partners with BVNK for Stablecoin Transactions
Visa, the renowned payments corporation, has teamed up with BVNK, a stablecoin infrastructure firm based in London, to enhance its Visa Direct platform by introducing stablecoin-funded transactions. This collaboration aims to broaden Visa Direct’s capabilities, which currently facilitates an impressive volume of $1.7 trillion in money transfers.
According to a statement released on Wednesday, this arrangement will enable certain businesses to fund payouts ahead of time using stablecoins, allowing them to send money straight to the stablecoin wallets of recipients.
Launch and Market Potential
The partnership is set to launch in selected markets where there is a significant demand for digital currency transactions, with plans for further growth contingent on customer feedback and compliance with regulations. Mark Nelsen, who heads Visa’s global product division for commercial and money movement solutions, emphasized the potential of stablecoins to transform the payment landscape. He mentioned that they could provide continuous availability for transactions even during weekends, holidays, and outside regular bank hours.
Expert Opinions on the Impact
Experts are optimistic about the impact of this move. Jayanand Sagar, co-founder of Hyperbola Network, remarked on the potential of stablecoin payouts to eliminate delays commonly encountered in traditional global payment systems, suggesting that the speed at which value can be transferred could change the competitive landscape in financial transactions. He highlighted that the pressing question revolves around whether existing monetary infrastructures can swiftly adapt to these new transactional systems.
Brian Melher, CEO of Stable, added that while payment networks will play a pivotal role in the adoption of certain stablecoins, the critical factor will ultimately be the reliability and predictability of the underlying infrastructure that supports these transactions.
Background and Future Prospects
This announcement builds on a prior strategic engagement between Visa and BVNK, following Visa’s investment in BVNK during its Series B funding round last May. Visa had previously initiated tests for stablecoin wallet payouts in November, allowing conversions of fiat payments into USD-backed stablecoins like Circle’s USDC, with expected expansions by late 2026, subject to regulatory frameworks.
Regulatory Considerations
The timing of this collaboration coincides with ongoing developments concerning regulatory standards for payment stablecoins in the U.S., particularly the recently introduced GENIUS Act. Jimmy Xue, the COO & Co-founder of Axis, observed that while major payment entities like Visa are pivotal in granting utility to stablecoins like USDC and PYUSD, their influence is increasingly bound by stringent regulatory environments that dictate the types of stablecoins they can support.
This shift emphasizes the importance of institutional trust and fraud protection over the branding of the tokens themselves, creating a new dynamic in the landscape of global finance.
