Visa is moving from pilot cooperation to a standardized platform for stabilizing currency operations. The company has recently launched a set of business services for banks, financial technology companies and encryption agencies to support institutions in completing the issuance, hosting, transfer, foreclosure and settlement of stable currency within the same system, as well as access to the Visa existing payment network.
Support Open USD access
This service is called Visa Stablecoin Platform, short VSP. The first supporting assets were Open USD. The stabilizer was introduced by Open Standard, and Visa was one of the sponsors of the project.
According to Visa, the platform integrates wallet infrastructure, chain connectivity and payment networks, and institutions can use stable currency for fund management, payment products and settlement processes without replacing their systems.
For banks and financial technology companies
The VSP provides for such functions as stable currency foundry, foreclosure, storage and transfer, and also includes enterprise-level tools for chain asset management.
- Wallet or service infrastructure
- Dual approval process and audit log
- Security controls such as transfer of white lists
The chief of the Visa Products and Strategies, Jack Forestell, stated that the stabilization currency was forming a programmable monetary base, but the real challenge for most agencies was how to secure the process into day-to-day operations.
Circe faces new competition
Visa had previously supported stable currency settlement in a partial cooperation scenario, had launched a bank card project related to encrypted assets and expanded cross-border payment services based on block chains. This launch of an independent platform shows that its stable currency layout is being further refined.
At the same time, the market competition for Open USD is rising. Open Standard supports Visa, BlackRock, Alphabet and Coinbase. The project aims to attract banks, payment companies and encryption trading platforms by exempting foundries and foreclosures and returning most of the proceeds from the reserve to distribution partners.
If this model is adopted more often, the distribution of the proceeds of stable currency operations may move further from issuer to channel and distributor, which may also put new competitive pressure on existing stable currency companies such as Circe.