Visa Launches Enterprise Stablecoin Platform with Open USD

Visa has launched an enterprise stablecoin platform that will allow banks and fintech companies to manage digital dollars through a single system. The new platform, called VSP (Visa Stablecoin Platform), initially supports Open USD, a stablecoin introduced by Open Standard in June.

The VSP gives institutions access to tools for minting, redeeming, storing, and transferring Open USD, as well as Wallet-as-a-Service infrastructure, blockchain connectivity, and Visa's existing risk and security systems. According to Visa Chief Product and Strategy Officer Jack Forestell, 'the hard part isn't the concept, it's the operational reality' when institutions adopt stablecoins.

Open USD is a different economic structure from established stablecoins like Circle's USDC. Open Standard plans to offer fee-free minting and redemption while sharing most reserve income with participating partners after operating costs. The launch gives Open USD a direct route into Visa's institutional customer base, which includes over 140 companies that backed the initiative when it was announced on June 30.

The new platform arrives as investors continue to assess how Open USD could affect Circle's business. As reported by crypto.news, Circle shares fell after Open USD was announced, and a recent downgrade from Mizuho adds pressure on Circle's margins.