GoCheckMyCrypto.comVisa Launches Stablecoin Platform with Open USD, Pressuring Circle's Business Model
Visa launched the Visa Stablecoin Platform (VSP) enabling banks and fintech companies to issue, store, transfer and redeem Open USD stablecoins through a single Visa-managed system integrated with its existing payment network. The platform's no-fee revenue-sharing model undercuts traditional stablecoin issuers, prompting Circle's stock to decline 5% following the announcement.
Visa launched the Visa Stablecoin Platform (VSP) on July 16, 2026, enabling financial institutions to issue, store, transfer and redeem Open USD stablecoins through a single Visa-managed system integrated with its existing payment network. The move represents Visa's shift from supporting stablecoins on its infrastructure to building and distributing stablecoin technology directly, per CoinDesk.
VSP includes tools for minting and redeeming Open USD, wallet-as-a-service infrastructure, blockchain connectivity and security features such as dual-approval workflows, audit logs and transfer allow lists. The platform integrates with Visa's existing payment network, allowing financial institutions to incorporate stablecoins into treasury management, settlement and payment products without replacing existing systems. Jack Forestell, Visa's chief product and strategy officer, framed the platform as solving an operational bottleneck: "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."
Open Standard, the consortium behind Open USD, counts Visa, BlackRock, Alphabet and Coinbase among its backers. The consortium is seeking to attract banks, payment firms and crypto exchanges by eliminating minting and redemption fees while returning nearly all reserve income to distribution partners, according to CoinDesk. This revenue-sharing model directly undercuts the economics of established stablecoin issuers.
Circle, which issues USDC, the world's second-largest stablecoin behind Tether's USDT, saw its stock decline approximately 5 percent on July 16 following Visa's announcement. Circle's shares have faced investor pressure since Open Standard was unveiled, reflecting concerns that new revenue-sharing models could erode the economics of established issuers. Visa already supports stablecoin settlement for select partners, offers crypto-linked card programs and has expanded blockchain-based cross-border payment services, making VSP an extension of existing strategy rather than an entirely new direction.
The platform's launch reflects competition over who controls the infrastructure layer of institutional stablecoin adoption. Visa's scale, integrations with existing payment rails, and backing from major technology and financial firms position VSP as a significant challenger to traditional issuers.
Visa's VSP, backed by BlackRock, Alphabet and Coinbase through Open Standard, uses a no-fee revenue-sharing model that returns nearly all reserve income to distribution partners, directly threatening Circle's USDC economics.
Watch which financial institutions adopt VSP and at what speed, and track whether Open USD gains meaningful circulation relative to USDC and USDT. If VSP captures substantial institutional volume, it signals that payments infrastructure providers can displace specialized crypto issuers. If adoption stalls, it suggests that neutral, crypto-native issuers retain advantages in decentralization and flexibility that Visa's model cannot overcome.
And that's the way it is.
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