Core Insights - Visa is testing a pilot project to offer financial institutions, banks, and remittance service providers the option to use pre-funded stablecoins for cross-border payments, aiming to enhance payment speed and flexibility while preventing long-term fund immobilization [1][2] - The pilot will utilize USD stablecoin USC and EUR stablecoin EURC issued by Circle, leveraging Visa Direct's real-time processing platform [1] - This initiative addresses concerns about insufficient account funds causing delays in service for end-users, particularly during non-operational hours of traditional payment systems [1] Group 1 - Visa Direct currently facilitates fund transfers to approximately 11 billion Visa cards, bank accounts, and digital wallets across 195 countries [1] - The addition of stablecoin support allows clients to fund their global account networks in real-time, mitigating delays caused by existing payment systems during non-working hours [1] - Since 2021, Visa has been integrating stablecoins into its network, processing over $225 million in stablecoin transactions to date, although this still represents a small fraction of the total $16 trillion payment cash flow for fiscal year 2024 [2] Group 2 - Visa Direct also serves other applications, such as paying gig economy workers and providing instant withdrawal options for cryptocurrency exchange customers [2] - This service is a cornerstone of Visa's strategy to expand beyond traditional credit card business into inter-business payment sectors [2] - The lucrative business of Visa Direct faces intense competition, with banks like JPMorgan developing blockchain-based products to offer faster payment solutions for corporate clients [2]

Core Insights - Visa is expanding its stablecoin settlement capabilities by integrating digital assets and blockchain technology, enhancing its role in the global payment system [1] Group 1: Expansion of Stablecoin Offerings - Visa has partnered with fintech company Paxos to launch two new USD-backed stablecoins: Global Dollar (USDG) and PayPal Dollar (PYUSD), both pegged 1:1 to the US dollar, aimed at providing efficient and secure solutions for cross-border payments [2] - The introduction of stablecoins addresses traditional cross-border payment issues such as slow speed, high costs, and complex procedures, enabling real-time settlement and lower transaction fees through blockchain technology [2] Group 2: Blockchain Compatibility Enhancements - To improve system compatibility, Visa has added support for Stellar and Avalanche blockchains, in addition to existing support for Ethereum and Solana, enhancing the flexibility and scalability of its network [3] - Stellar focuses on cross-border payments, offering low-cost and fast transaction methods, while Avalanche provides high transaction throughput and low latency, making it suitable for financial applications [3] Group 3: Global Strategic Initiatives - Visa's expansion includes not only USD-backed stablecoins but also Euro-backed stablecoins, collaborating with Circle to integrate the Euro stablecoin (EURC) into its settlement platform, providing users with more options and lower transaction costs for cross-border payments [4] - Visa is developing a multi-currency and multi-chain infrastructure to meet global partner needs, emphasizing the importance of trust, scalability, and interoperability for stablecoins to transform global currency circulation [4] - The company is also expanding its stablecoin-linked card offerings, which combine stablecoins with traditional card functionalities for global consumption and payments, aiming to provide users with convenient payment options across multiple blockchain wallets [4] Group 4: Industry Perspective - The transition of payment intermediaries like Visa from traditional payment systems to stablecoin operations is seen as a natural evolution, driven by the inherent advantages of stablecoins such as speed and low costs [5] - However, the transition poses challenges for large payment intermediaries, requiring a balance between traditional and stablecoin operations, along with addressing technical challenges and identifying new use cases [5]

Core Viewpoint - The article discusses the recent developments in the stablecoin market, particularly focusing on Circle's IPO and the implementation of the Stablecoin Regulation in Hong Kong, which aims to regulate stablecoin activities and establish a licensing system [1][4]. Group 1: Circle's IPO - Circle officially listed on the NYSE on June 5, becoming the first publicly traded stablecoin company, with an IPO price of $31 per share and a total fundraising amount of $1.054 billion [2]. - The stock opened at $69, a 122% increase from the IPO price, and reached a peak of $103.75, marking a 235% increase before closing at $83.23, a 168% rise [2]. - The IPO was oversubscribed with a subscription ratio exceeding 20 times, leading to an increase in the number of shares issued from 24 million to 34 million [2]. Group 2: USDC Market Position - As of May 2025, USDC's circulation reached $61 billion, holding a market share of 24.4%, making it the second-largest stablecoin after Tether's USDT [3]. - USDC is compliant with regulations, backed by cash and short-term government bonds, unlike USDT, which includes commercial paper and cryptocurrencies in its reserves [3]. - Circle's revenue projections show a significant increase from $772 million in 2022 to $1.676 billion in 2024, with net profits expected to turn positive in 2024 [3]. Group 3: Hong Kong's Stablecoin Regulation - The Hong Kong government announced the implementation of the Stablecoin Regulation on August 1, 2025, establishing a licensing system for stablecoin activities [4][5]. - The regulation aims to provide appropriate guidelines for stablecoin activities, promoting sustainable development in Hong Kong's digital asset ecosystem [5]. - The regulation is seen as a milestone that could enhance Hong Kong's competitiveness as an international financial center and support the internationalization of the Renminbi [5]. Group 4: Global Stablecoin Legislation - Global regulatory bodies are accelerating the legislative process for stablecoins, with the U.S. Senate passing a stablecoin bill, expected to be finalized by August [6]. - The U.S. government views stablecoins as a means to increase demand for U.S. Treasury securities and strengthen the dollar's position [6]. - The expansion of the stablecoin market is anticipated to provide long-term benefits for cryptocurrencies, although the acceleration of this trend may depend on the certainty of U.S. policies [6].