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Stablecoin activity is still limited to crypto trading or being used as a store of value while Visa and Mastercard offer wide acceptance.
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Stablecoin lack fraud protection but the cards offer high protection measures.
- Stablecoins are gaining traction, but are they ready to challenge payment giants like Visa and Mastercard?
- Visa and Mastercard aren’t sitting idle; they’re making quiet moves in the stablecoin space.
- Despite crypto’s rise, the real battle for everyday payments is just beginning.
Visa and Mastercard have stated that stablecoin payments currently pose no threat to their dominance in the payments industry. Despite the global surge in crypto adoption in 2025, Visa’s annual transaction volume remains at $15 trillion, far larger than the stablecoin market.
Can Stablecoin Become a Threat to Visa and Mastercard?
According to Reuters, both companies explained that the majority of stablecoin activity is still limited to crypto trading or being used as a store of value, rather than for everyday payments. Around 90% of stablecoin volume is tied to crypto exchanges.
In contrast, Visa and Mastercard offer predictability, wide acceptance, and strong fraud protection advantages that stablecoins have yet to match.
The company executives acknowledged that stablecoins are powered by advanced technology. However, they also emphasized that stablecoins lack key elements such as scale, reliability, fraud safeguards, and consumer trust factors that are well established in traditional card networks.
Visa and Mastercard Invest in Stablecoin
Both companies are actively investing in stablecoin integration and infrastructure to bridge the gap between traditional finance and the crypto world. With the introduction of clearer regulatory frameworks like the GENIUS Act, stablecoins are gradually gaining more acceptance.
Stablecoins are particularly growing in countries with unstable fiat currencies or high inflation, where they serve as an alternative store of value and a cross-border remittance tool. However, in developed economies, their adoption is slower due to regulatory uncertainties and limited consumer protection areas where card networks hold a strong edge.
Final Thought
While many merchants in the U.S. are drawn to stablecoins for their lower fees, faster settlements, and global reach, Visa and Mastercard still dominate the payment ecosystem. Most stablecoins remain confined to the crypto space, whereas Visa and Mastercard are deeply embedded in global payment infrastructure.
