Fenrir Crypto
Visa is gearing up for a groundbreaking launch with its global stablecoin-issuing platform, expected to roll out in 2025. This move will allow banks and financial institutions to easily issue stablecoins, which are digital currencies tied to stable assets like the US dollar.
The Spanish bank is pushing further into the blockchain space through a partnership with the payments giant.
By integrating stablecoins into its massive global network, Visa aims to push the boundaries of digital payments and offer faster, cheaper, and more secure transactions. By doing so, Visa is positioning itself as a leader in connecting traditional financial services with the rapidly evolving world of blockchain and digital assets.
Notably, Spanish banking giant BBVA has been testing Visa's platform throughout the year, with plans to launch a pilot program for select customers on the Ethereum blockchain in 2024. Visa's goal is to make stablecoin issuance as seamless as possible for banks, and provide them easy access to digital assets.
Visa isn’t the only major player in the stablecoin game. Fintech giants like Revolut, Robinhood, and PayPal are all exploring stablecoins as they seek to expand their digital financial services. Revolut is reportedly in the process of creating its own stablecoin , following in the footsteps of PayPal, which recently launched its own dollar-backed stablecoin called PYUSD . Robinhood is also considering stablecoins as part of its broader push into crypto .
Fintech giants Robinhood and Revolut are reportedly contemplating making their entry into the stablecoin market.
These companies have already disrupted traditional banking by offering easy-to-use apps for trading, spending, and saving money. Now, by embracing stablecoins, they’re signaling that they see digital currencies as a crucial part of their future. Their entry into the stablecoin space will likely accelerate adoption among mainstream users, making stablecoins a common tool for day-to-day transactions.
For users, this means faster, cheaper, and more secure ways to send and receive money, especially across borders. And for banks, the pressure is on to keep up. Visa’s platform provides a way for traditional financial institutions to stay competitive by offering stablecoins without needing to build the technology from scratch.
Stablecoins are a type of cryptocurrency that’s pegged to a stable asset, such as the US dollar or gold. Unlike volatile cryptocurrencies like Bitcoin, stablecoins maintain a consistent value, making them ideal for daily transactions.
The most popular stablecoins are USDT and USDC, both are pegged 1:1 to the US dollar and are backed by cash, corporate bonds, loans, and other investments as collateral.
Other examples of stablecoins are:
Pax Gold (PAXG)- Pegged to gold’s price
Tether Euro (EURT)- Pegged to the Euro
Tether Peso (MXNT)- Pegged to the Mexican Peso
DAI- Decentralized stablecoin issued by MakerDAO
And the list goes on. There are stablecoins pegged to many nations’ currencies, providing people with a chance to swap their national fiat currency for the equivalent amount of digital currency.
Why stablecoins matter:
Instant global transactions: Send and receive money across borders in seconds.
Lower fees: Avoid costly bank fees and middlemen.
Reduced reliance on banks: More financial independence and accessibility, especially in regions with unstable banking systems.
Efficient business payments: Streamline cross-border operations for faster and cheaper transfers.
In short, stablecoins are reshaping global finance, offering a faster, more efficient, and accessible way to move money.
Creating a stablecoin involves several key steps:
Asset backing: A company creates a stablecoin by backing each unit with a real-world asset like the US dollar (in most cases), gold, or a basket of currencies.
Issuance and minting: The stablecoin is issued on a blockchain platform like Ethereum, Solana or Base chain, where new tokens are minted whenever new assets are deposited.
When a user deposits an asset (e.g., USD) with the issuing company, an equivalent amount of stablecoins is created or “minted” on the blockchain. For example, if you deposit $1, you receive 1 USDC.
Burning tokens: When the user redeems their stablecoin for the underlying asset, the tokens are "burned" or removed from circulation, ensuring that the supply always matches the reserves. Using smart contracts, the minting and burning processes can be automated, trustless, and allows easier and transparent analysis by users.
Maintaining stability: To keep the stablecoin’s value pegged to the underlying asset, issuers must ensure that their reserves always match or exceed the circulating supply. Stablecoins are regularly audited to ensure that every token in circulation is fully backed by the underlying assets.
🐺 Rise with Fenrir! 🐺 - 🌑 Let your pack hear your howl - Share now! ⁀➴
Transaction fees: Every time someone buys, sells, or transfers a stablecoin across wallets or withdrawing funds to fiat., the issuing company usually charges a small fee.
Interest earnings: Issuing companies like Circle who provides $USDC, often earn interest on the cash reserves backing the stablecoin. Instead of letting their reserves sit idle, they can invest it in safe, short-term assets such as government bonds or money market instruments.
The difference between the interest earned and the costs of issuing the stablecoin becomes a profit for the company.Companies often hold large reserves of the backing asset (like cash or bonds), earning interest on those funds.
New services: With stablecoins, companies can offer new financial services, like payments, lending, and yield-earning products, which generate additional revenue.
In summary, stablecoin issuers benefit from transaction fees, interest earnings on reserves, and participation in DeFi or other financial services, all while ensuring that their stablecoins remain stable and trusted.
Stablecoins offer several benefits for everyday users and crypto users.
Why it’s good for you:
Stable savings: Use stablecoins to earn better interest than you would with a traditional savings account, especially with yield pools that offer higher APYs (interest).
Safe haven in crypto: Stablecoins can act as a safer store of value during volatile crypto markets since their value doesn’t fluctuate as much.
Easy global transfers: You can send stablecoins to anyone, anywhere in the world, instantly and with lower fees than traditional bank transfers.
How to benefit from stablecoins:
Yield pools: Platforms like Aave or Compound offer yield pools where you can deposit stablecoins and earn interest—often with APYs higher than most bank savings accounts.
Cross-border payments: If you’re sending money abroad, using stablecoins can save you time and money compared to traditional remittance services, especially using chains such as Solana, Base, Tron, etc.
Low-risk crypto: Holding stablecoins offers exposure to the crypto space without the wild price swings of other digital currencies.
Visa’s 2025 stablecoin platform, along with the entry of major fintech players like PayPal, Revolut, and Robinhood into the stablecoin space, signals a seismic shift in global finance. These companies are making stablecoins a key part of everyday transactions, moving us closer to a world where digital currencies are as common as swiping a Visa card.
This is also a huge benefit for businesses as processing payments can be sometimes be very complex and a long process making transactions feel like a headache.
Old way of businesses making payments:
New way for businesses to make payments:
As stablecoins continue to gain traction, and as regulatory frameworks mature, Visa's platform might just redesign how value actually moves around the world. But the upcoming stablecoin platform is not only a testament to Visa's commitment to financial innovation; it underlines how industry leaders are striving towards a more integrated and seamless world economy.
That is a big telltale sign that there is a sea change in finance. Such global recognitions, with hundreds of millions of active users, could normalize stablecoins for everyday payments, making crypto more accessible and more trustworthy. By 2025, stablecoins may become an essential way for all of us to interact with money.
This competitive push by both fintech and traditional banking institutions might turn stablecoins into something as familiar and usable as the usage of a Visa card itself in a not-so-distant future!
Disclaimer: This article is for informational purposes only. It is not intended to be investment advice. The crypto market is highly volatile, and investing in crypto projects can be risky. Always do your own research and consult with a financial advisor before making any investment decisions.
🐺 Rise with Fenrir! 🐺
🌑 Let your pack hear your howl - Share now! ⁀➴
Follow Fenrir : X / Socials / Top Tools & Airdrops
Top Fenrir Picks:
Koinly : Crypto Taxes made easy!
Ledger : Ultimate Crypto Security! Buy a Ledger, Get 10$ in Bitcoin.
Moni : Discover Web3 projects before anyone else! Get 5% off !
Shakepay : Receive $BTC cashback for each purchase you make! (for 🍁) + 20$ in BTC
Hyperliquid : Best on-chain DEX! Save 10% on trading fees
Uncovered a hidden Gem we haven’t covered yet? Have Tips or Alpha you want to share with the pack? Drop us a line at fenrircrypto@gmail.com or DM on X.
🖤 Inspired to help from the shadows? Donations are welcome 🖤
@ fenrircrypto.eth / fenrircrypto.base
⛓ Break Free. Be Fenrir. 🐺
650