RLUSD maintains full 1:1 backing through cash and U.S. Treasury securities held in a New York Trust Company structure with third-party attestation. This matters to institutions because it eliminates the counterparty risk that caused algorithmic stablecoins like Terra's UST to collapse in 2022—banks won't touch unbacked stablecoins, but regulated reserve structures meet their compliance requirements.Ripple provides the infrastructure that makes on-chain settlement practical. It maintains the XRP Ledger's cor ...

Core Insights - Visa Inc. has launched a pilot program for instant payouts in USD-backed stablecoins like USDC through its Visa Direct platform, targeting creators and gig workers for direct earnings transfer to crypto wallets [1][9] - The initiative aims to modernize payment systems by utilizing blockchain technology for faster and more efficient fund transfers, enhancing accessibility for the digital workforce [2][3] Group 1: Visa's Initiative - The pilot program allows platforms and marketplaces to send earnings to users' crypto wallets instantly, moving away from traditional slower methods [2] - This initiative represents a significant step in bridging traditional finance with digital currency, streamlining cross-border payouts and enhancing user trust in blockchain for real-world transactions [3] - A broader rollout of the program is expected in the second half of 2026, indicating Visa's commitment to payment innovation and addressing the demand for digital-first financial solutions [4][3] Group 2: Competitive Landscape - Competitors like Mastercard and American Express are also advancing in the stablecoin space, with Mastercard unveiling end-to-end capabilities for stablecoin transactions and joining the Global Dollar Network [5][6] - American Express has partnered with Coinbase for a crypto-linked credit card, indicating a more cautious approach to blockchain innovation compared to Visa's aggressive strategy [6] Group 3: Financial Performance and Valuation - Visa's shares have increased by 7.2% year to date, outperforming the broader industry but lagging behind the S&P 500 Index [7] - The company trades at a forward price-to-earnings ratio of 26.05X, higher than the industry average of 20.65, reflecting its premium valuation [10] - The Zacks Consensus Estimate predicts an 11.7% rise in Visa's fiscal 2026 earnings year over year, followed by a 13.3% growth in the subsequent year [11]