Visa Launches Stablecoin Platform Built Around Open USD as Circle Shares Fall

Visa introduced the Visa Stablecoin Platform on July 16, a new enterprise service that lets banks, fintechs and crypto-native firms mint, hold, transfer and redeem stablecoins through a single Visa-managed system, according to the company’s press release. The platform launches in beta with support for Open USD, a rival stablecoin to Circle’s USDC, and its debut coincided with a roughly 5% drop in Circle shares.

What the Visa Stablecoin Platform Does

The platform, known as VSP, bundles onchain wallet infrastructure through a new Wallet-as-a-Service offering with direct connectivity for minting and burning Open USD. Visa said the service integrates with institutions’ existing treasury, settlement and payment systems rather than requiring them to replace current infrastructure, and includes security controls such as dual-approval workflows, audit logging and transfer allow lists. Jack Forestell, Visa’s chief product and strategy officer, said in the company’s announcement:

“Stablecoins are opening up a new layer of programmable money, but for most institutions the hard part isn’t the concept, it’s the operational reality. With the Visa Stablecoin Platform, we’re giving our clients a single place to mint, move and manage stablecoin operations with the controls, security and network reach they already expect from Visa.”

Visa said VSP, including its Wallet-as-a-Service component, is initially available only for beta testing with select clients, with broader availability to depend on what the company learns from those early deployments.

A Beta Launch Tied to a Growing Rival Consortium

Open USD launched June 30 under Open Standard, a newly formed operator backed by more than 140 companies, including Visa, Stripe, Mastercard, Coinbase, BlackRock and American Express. The project is led by Zach Abrams, co-founder of Bridge, the stablecoin infrastructure firm Stripe acquired in 2024. Abrams said at the token’s launch:

“Existing stablecoins have great strengths, but to use them at scale, businesses need something that’s open, low-cost, high-throughput, broadly accessible, and aligned to their interests.” 

Open USD eliminates minting and redemption fees for partners and passes most reserve income back to the businesses distributing the token. This structure shifts stablecoin economics away from the issuer and toward the companies putting the token in front of customers.

Circle Shares Drop as Competitive Pressure Builds

Circle shares fell more than 5% in midday trading on the VSP announcement, extending a decline that began when Open USD first launched. Circle stock has dropped roughly 20% so far this year, while Coinbase, Circle’s key distribution partner, has fallen nearly 30% over the same period; Coinbase has also become an Open Standard backer despite its ties to Circle.

USDC’s circulating supply has slipped to around $73 billion, down from nearly $80 billion in March, adding to investor concern about the token’s growth trajectory. Research firm Mizuho recently cut its price target on Circle to $50, citing the risk that Open USD’s yield-sharing model poses to Circle’s margins.

A Different Business Model for Stablecoin Revenue

Circle’s reserve interest income made up 99% of its revenue in 2024, according to the company’s own filings. That business model is built on retaining the yield earned from stablecoin reserves rather than sharing it with distribution partners. Open USD’s model inverts that structure, and its rapid consortium growth, now including a major card network directly building infrastructure around the token, reflects growing interest among large payments companies in revenue-sharing stablecoin models.