Visa seeks new stablecoin settlement partner after BVNK acquisition

Visa is actively searching for a new partner to handle stablecoin settlements and over-the-counter transactions, according to documents reviewed by CoinDesk. The payments giant requires the prospective partner to possess cryptocurrency exchange licenses in key markets including the U.S., Canada, the UK, and Singapore. This strategic move is necessary to fill the void left by BVNK, Visa's former stablecoin firm, which was acquired by Mastercard earlier this year.

The new partner will also be responsible for settlements related to the Open USD stablecoin project, a joint initiative involving Stripe, Visa, and Mastercard, designed to support multiple stablecoins. The limited licensing requirements across major jurisdictions have narrowed the field of potential partners.

Despite a general downturn in the broader cryptocurrency market, stablecoins have emerged as a significant focus for major payment networks. The total market capitalization of stablecoins stands at approximately $300 billion. The urgency for Visa and Mastercard to secure new partnerships may have been amplified by Stripe's recent acquisition of stablecoin infrastructure firm Bridge for $1.1 billion, signaling an aggressive approach in the sector.

Last month, Visa launched its Visa Stablecoin Platform, offering tools for banks, fintechs, and payment providers to manage stablecoins, with OUSD being the initial supported token.