Visa and Mastercard, two of the world’s largest payment companies, announced separate partnerships on the same day to expand their stablecoin infrastructure. Visa is integrating zerohash technology into the Visa Direct network, while Mastercard has launched a new pilot aimed at improving trust and compliance in cross-border stablecoin payments.
The two initiatives focus on different areas. Visa is expanding stablecoin funding and payout capabilities, while Mastercard aims to verify participants in blockchain transactions.
Visa Direct Opens Up to Stablecoin Payments
Visa will expand the stablecoin capabilities of Visa Direct through a collaboration with blockchain infrastructure provider zerohash. Eligible Visa Direct clients will be able to prefund merchant accounts with stablecoins and send stablecoin-denominated payouts to recipients.
zerohash will provide both the technical infrastructure and regulatory compliance support for the service. However, the companies have yet to disclose which stablecoins and blockchain networks will be supported or where the service will initially become available.
Visa Direct connects to more than 18 billion endpoints across over 195 countries and territories, including cards, bank accounts and digital wallets. The integration could therefore bring stablecoin-based payments to a broader group of institutional clients.
Mastercard Focuses on Trust and Compliance
Mastercard, meanwhile, has launched a Crypto Credential pilot with Borderless.xyz. The companies will test Mastercard’s existing framework to verify participants and standardize compliance checks in cross-border stablecoin transactions.
Crypto Credential generates assurance signals confirming that institutions involved in blockchain transactions meet specific security and compliance standards. Companies participating in the Borderless.xyz network will be able to incorporate these signals into transaction approvals, risk management and compliance procedures.
Infinia, Walapay and Koywe are among the first stablecoin payment companies to join the pilot. Borderless.xyz says its infrastructure connects more than 15 licensed stablecoin providers across over 100 countries.
Stablecoin Payments Race Accelerates
Visa’s initiative aims to simplify stablecoin funding and transfers, while Mastercard is strengthening the trust and identity verification layer surrounding these transactions. The two payment giants are therefore addressing different challenges within the stablecoin market.
Mastercard recently completed its acquisition of stablecoin infrastructure company BVNK. Visa, meanwhile, introduced the Visa Stablecoin Platform in July, enabling financial institutions to issue, manage and transfer stablecoins.
The series of developments shows that stablecoins are becoming increasingly embedded in traditional payment networks. Visa and Mastercard are moving beyond crypto-linked cards, creating a place for stablecoins within the underlying infrastructure of cross-border money transfers.
