Visa Reports Tenfold Increase In Stablecoin Settlements

Credit card giant Visa (NYSE: $V) says it has surpassed $25 billion U.S. in annualized stablecoin settlement volume, a tenfold increase from a year earlier. 

Within banking, settlement refers to the final stage of a financial transaction where funds are moved and exchanged between financial institutions. 

Owing to strong demand, Visa has expanded its stablecoin-linked card business to more than 225 programs, serving approximately five million cards in more than 50 countries.

The stablecoin information was disclosed by Visa CEO Ryan McInerney on the company’s recent earnings call with analysts and media. 

McInerney said that Visa’s settlement operations now cover 10 blockchains, more than twice the number supported a year ago, as it responds to growing demand for stablecoins. 

Stablecoins are cryptocurrencies whose underlying value is pegged to another asset, most often the U.S. dollar.  

Visa’s stablecoin-linked card programs have risen more than 70% year-over-year to over 225, according to McInerney. Transaction volume across the programs has grown more than 150%.

Stablecoin-linked cards allow people to spend balances associated with digital assets through Visa’s existing merchant network. 

Providers typically convert stablecoin holdings into the currency required for card purchases.

McInerney said the company intends to remain flexible about which blockchains and stablecoins clients use, allowing financial institutions to select which assets they favour. 

The comments about Visa’s stablecoin business were made alongside strong quarterly financial results from the credit card issuer. 

V stock has risen 17% over the past 12 months to trade at $400.60 U.S. per share.