Investment Bank Mizuho Says Visa Is Becoming the ‘Stablecoin of Stablecoins’

Core Viewpoint - Mizuho describes Visa as the "stablecoin of stablecoins," highlighting its integral role in the global stablecoin infrastructure and blockchain-based payments [1][5]. Visa's Role in Stablecoin Infrastructure - Visa has established over 130 stablecoin-linked card programs across more than 40 countries, with spending increasing fourfold year-on-year, positioning it as a central player in the payments landscape [1][2]. - The bank views Visa's role as a "network of networks," suggesting that as stablecoins become more commoditized, Visa will be a key long-term growth driver [5]. Financial Performance and Projections - Visa Direct has experienced approximately 50% annual growth since 2016, now representing about 15%-20% of global debit volume, exceeding $1.1 trillion [3]. - Mizuho maintains an outperform rating on Visa shares with a price target of $425, despite the stock trading around $343.30 at the time of publication [2]. Competitive Advantage - Analysts note that Visa's centralized hub offers a significant competitive advantage as various stablecoins emerge, including USDT, USDC, and PayPal's PYUSD [4]. - Visa currently supports four stablecoins: USDG, PYUSD, EURC, and USDC, indicating that its platform is just beginning to expand in this area [5]. Market Positioning - The bank has an underperform rating on Circle (CRCL), the issuer of USDC, with a price target of $84, as it believes Circle is overvalued [5].