Visa Inc. (NYSE: V) saw its stock decline nearly 5% as investors reacted to the company's expanding initiatives in the stablecoin payments sector. The financial giant has announced a partnership with global stablecoin infrastructure provider BVNK to pilot stablecoin payouts through its Visa Direct money movement network. This initiative allows select business clients to pre-fund and distribute payouts in digital dollars directly to recipients' wallets, aiming to provide faster and more flexible transfers compared to traditional currencies.
In a parallel development, Visa has begun enabling U.S. banks, including early adopters Cross River Bank and Lead Bank, to settle transactions using the USDC stablecoin on the Solana blockchain. This system is designed to offer faster transfers and seven-day settlement windows while maintaining the traditional consumer card experience. Visa reported an annualized stablecoin settlement run rate exceeding $3.5 billion as of November 2025.
Despite the technological progress, regulatory uncertainty clouds the expansion. The proposed GENIUS Act, which establishes rules for payment stablecoins with 100% reserves, leaves oversight for settlements unclear. Federal Reserve officials have urged banks to consult supervisors as guidance is developed. Banks participating in the USDC-on-Solana initiative are effectively testing how regulators like the Federal Reserve and FDIC will treat on-chain settlements for balance sheets, capital, and operational risk.
To navigate this landscape, Visa has launched a Stablecoins Advisory Practice to support compliant growth. The move has sparked interest across the financial ecosystem, with payment processors and custodians exploring ways to support banks lacking internal stablecoin infrastructure. Analysts estimate Visa's stablecoin push could generate nearly $30 billion in stablecoin flows, highlighting the rapid merger of digital currencies with mainstream finance and positioning stablecoins as practical payment tools.
