Visa Launches Internal Stablecoin Platform: How OUSD Could Transform Cross-Border Payments

🔑 Key Takeaways

• Visa launches an internal stablecoin platform powered by OUSD, backed by more than 140 companies
• OUSD enables companies to « mint and redeem Open USD without fees or volume limits »
• Visa already supports USDC (Circle) and USDG (Paxos), expanding its ecosystem
• The global remittance market represents over 944 billion USD annually
• The average cost of 6.4% on these transfers creates a major opportunity for stablecoins

An Infrastructure for Financial Institutions

The Visa platform is designed to integrate with existing treasury systems at financial institutions. According to Rubail Birwadker, Global Head of Growth at Visa, the main goal is not simply to access stablecoins, but to ensure their interoperability with settlement workflows and current banking configurations.

« It is less about accessing stablecoins and more about how this interoperates with treasury settlement, money movement workflows, and existing bank setups. »

Rubail Birwadker, Global Head of Growth, Visa

This pragmatic approach aims to reassure traditional banks, often reluctant to adopt digital assets due to integration complexity. The platform will allow institutions to manage their stablecoin holdings securely while remaining compliant with their internal processes.

Open USD: The New Challenger to USDC

Initially, the platform will be powered by Open USD (OUSD), from the Open Standard initiative. This stablecoin, set to launch later this year, has already received backing from more than 140 companies, including Visa, Stripe, Mastercard, BlackRock, and Coinbase. These players have indicated that OUSD would enable enterprises to create and redeem the token without fees or volume limits.

Industry observers expect OUSD to become a major competitor to the US leader USDC, issued by Circle. The battle for institutional stablecoin dominance is intensifying, and Visa’s backing gives OUSD considerable symbolic legitimacy.

A Changing Regulatory Landscape

On the regulatory front, several recent developments have created a more favorable environment for stablecoins. In January 2025, President Trump signed an executive order aiming to establish a framework for digital assets, in order to strengthen American leadership and promote dollar sovereignty.

« AI is transforming the front end of commerce. Stablecoins are reshaping the back end. Visa’s role is to enable it to work securely, reliably and at global scale, for every participant in the ecosystem. »

Jack Forestell, Chief Product and Strategy Officer, Visa

The SEC has repealed SAB 121, which required banks to account for custodial crypto assets as liabilities, thus removing a major obstacle. Bipartisan bills, such as the STABLE Act (passed by the House Financial Services Committee) and the GENIUS Act (passed by the Senate Banking Committee), seek to regulate stablecoin issuance. U.S. banking regulators (OCC, FDIC, Fed) have also withdrawn directives requiring prior notification for cryptocurrency-related activities.

A Considerable Market Potential

The market potential remains considerable. Approximately 1.4 billion people live in countries where inflation exceeds 10%, and dollar-pegged stablecoins offer an alternative for preserving value. In sub-Saharan Africa, applications like Opera Mini Pay allow users to convert their local currency into stablecoins.

Integrating stablecoins into Visa cards can reduce these fees and accelerate transfer times. The partnership with Fireblocks around OUSD, presenting its Agentic Payments Suite, also facilitates integration with institutional players.

Outlook and Scenarios

Initial market reactions anticipate increased competition between OUSD and USDC, and broader adoption of stablecoins by banks and fintechs thanks to Visa’s backing. No major contradictions were found between sources, except for the lack of a specific launch date for the Visa platform.

Visa’s internal platform represents a major advancement in integrating cryptocurrencies into the traditional financial system. By connecting stablecoins to the global payment network, Visa could transform international remittances, reduce costs for millions of users, and accelerate the adoption of digital assets by traditional financial institutions. The coming years will be decisive in determining whether OUSD can challenge USDC’s dominant position in the U.S. stablecoin market.

Sources

• The Block – Visa launching internal stablecoin platform for clients that provides access to OUSD
• Fireblocks – Open USD Stablecoin Infrastructure Partner
• Visa – Stablecoins Solutions
• Visa Corporate – Stablecoins and the Future of Onchain Finance

This article is published for informational and educational purposes only. It does not constitute investment advice in any way. Conduct your own research (DYOR) before making any decisions.