Visa is now clearing stablecoin payments at a yearly rate of $4.5 billion, as demand picks up from companies offering crypto-linked cards. This represents a small but growing portion of the $14.2 trillion in payments Visa processed in 2025, with volumes increasing month over month, according to Cuy Sheffield, Visa’s head of crypto.
Sheffield told Reuters that Visa sees a significant opportunity to maintain its leadership by facilitating the integration of stablecoins into existing payment systems. He emphasized that even for new projects utilizing stablecoins, connecting back to the current financial infrastructure is crucial for widespread adoption. Currently, this established system is largely dominated by Visa.
Visa Tests USDC Settlements as Stablecoin Growth Continues
Visa is actively engaged in stablecoin-related initiatives, including the development of cards that enable users to spend cryptocurrency. In December, the company launched a pilot program in the U.S. allowing select banks to settle transactions with Visa using USDC, a stablecoin issued by Circle.
However, Sheffield acknowledged that direct stablecoin spending at retail locations is not yet widespread. He noted the absence of large-scale merchant acceptance, meaning that while individuals may hold stablecoins like USDT or USDC, they cannot readily use them for purchases in physical stores. This gap is where Visa's services become essential for companies issuing stablecoin-linked cards.
Sheffield further explained that these companies require Visa's products and services to effectively onboard and serve a broad customer base. He highlighted that USDT, issued by Tether and circulating extensively, holds a significant market presence with approximately $187 billion in value. Despite this substantial circulation, its usability at most retail establishments remains limited, underscoring Visa's role in bridging this divide.
Banks Explore Stablecoins as Traders Drive Transaction Volume
Major global financial institutions are closely monitoring the developments in the stablecoin market. Last year, prominent banks such as Goldman Sachs, UBS, and Citi announced their intentions to explore the creation of their own stablecoins.
This interest emerged amid growing discussions about stablecoins potentially diminishing the control commercial banks hold over international payment systems. In Europe, banks like ING and UniCredit have taken more direct action by collaborating to establish a new entity focused on building a euro-backed stablecoin, aiming to reduce reliance on U.S. dominance in digital payments.
Sheffield expressed enthusiasm for these initiatives, stating that the potential of stablecoins extends beyond just dollar-denominated applications. He believes the narrative surrounding stablecoins should encompass a broader range of possibilities.
While these institutional developments unfold, a substantial portion of the stablecoin ecosystem is currently driven by trading activities. Data from Visa's Allium Labs tracker indicates that the total circulation of stablecoins has surpassed $270 billion, more than doubling from $120 billion two years prior.
However, out of the $47 trillion in stablecoin transactions recorded on the blockchain, Visa's analysis identified only $10.4 trillion as genuine commercial activity.
Sheffield clarified that the remaining volume was excluded due to its origin from bots and high-frequency traders engaging in activities such as rapid coin exchanges across platforms or other non-payment-related operations. He explained that the figures were adjusted to remove volumes attributed to high-frequency traders and non-payment activities.