Credit card giants Visa (V +0.17%) and Mastercard (MA 0.20%) are integrating stablecoins in their existing transaction processing systems. If you can't beat them -- join 'em!
This could be a watershed moment in the history of digital payments in general, and crypto-based payments in particular.
NYSE: CRCL
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The debunked disruption
Remember when cryptocurrencies were supposed to disrupt credit card giants? Quick and low-fee payments with transaction-tuned cryptos like Litecoin (LTC +3.24%), Bitcoin Cash (BCH +1.53%), and yes, even Dogecoin (DOGE +4.36%) popped up at various checkout counters.
Thanks to digital payment processors like Bitpay and CoinGate, you can buy computer parts from Newegg (NEGG +3.35%) with Litecoin and AMC Entertainment (AMC +0.23%) popcorn and movie tickets with Shiba Inu (SHIB +4.61%) or your preferred stablecoin. Tesla (TSLA +7.18%) still accepts crypto payments, but only in the form of Dogecoin, of course. Elon Musk's favorite coin gets special treatment.
Image source: Mastercard.
Visa and Mastercard enter the chat
The tables are turning. The credit card veterans see value in encrypted ledgers of transaction data, and are actively building stablecoin-based processing into their payment platforms.
I may never know who started their stablecoin projects first, but Visa got the investor-facing party started in April 2025. Partnering with a Stripe subsidiary called Bridge, Visa cards can be linked to the card user's stablecoin holdings. It's like a traditional debit card, relying on a new type of funds. Visa highlighted this project as a particularly promising product for Latin America, where banking systems can be slow but stablecoin ownership is relatively common.
Mastercard followed suit in June. The company integrated four leading stablecoins in its global settlement systems. This move involved collaborations with stablecoin issuers Circle Internet (CRCL +2.29%), Fiserv (FI +0.16%), Paxos, and PayPal (PYPL 0.08%).
"Consumers and merchants adopt solutions that are convenient, secure and dependable," Mastercard said in the press materials. "We don't see stablecoins disrupting this dynamic -- in fact, they reinforce it."
NYSE: V
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The ripple effects on Litecoin, Dogecoin, and friends
You may have noticed that Visa and Mastercard aren't charging in with their own bespoke crypto-like payment alternatives, promising to disrupt every stablecoin under the sun. Instead, they are picking partners and teeing up established coins like USDC (USDC +0.01%) and PayPal USD (PYUSD +0.04%) for widespread usage by consumers around the world.
Both companies underscored the money-moving powers of stablecoins, foreshadowing rivalries with international payments specialist XRP (XRP +7.22%). Or maybe they're hoping to acquire XRP's Ripple Labs organization before it goes public. Either way, the border-crossing market is heating up like a crypto-mining rig without a fan.
The payment-focused cryptos mentioned earlier are certainly facing a challenge here. Veterans like Bitcoin Cash and Litecoin need to make it clear that they're built for fast and secure crypto payments. Ad campaigns and exclusive retailer partnerships spring to mind, but I'm not sure their open-source developer communities are prepared for that task.
Shiba Inu and Dogecoin always painted outside the lines, basing their business cases on celebrity tweets and other social media pushes. For all I know, that could be enough to keep the leading meme coins relevant even in the shadow of Mastercard and Visa stablecoin deals.
CRYPTO: DOGE
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How to invest in this plot twist
In the end, cryptocurrencies are really just a different accounting method. They're fast and secure, and the right partnerships can tie them into most traditional bank accounts and payment platforms. Innovative financial giants like Visa and Mastercard are almost inevitable participants in this evolved setup with public transaction ledgers behind encrypted firewalls.
So, how should investors play this sea change, even while the whole crypto sector is sagging and perhaps entering the next crypto winter?
It depends, of course. Mastercard and Visa are promising choices, and their stocks are reasonably valued right now. If the stablecoin integrations spark fresh business growth in Latin America and the e-commerce sector, credit card processors could be lucrative holdings over the next few years.
Image source: Visa.
The stablecoins themselves aren't really designed for long-term investments. Sure, they often come with reasonable interest-like reward payouts, but they're more useful as behind-the-scenes tools in trading of cryptocurrencies and other assets. However, stablecoin issuers like Circle and PayPal should benefit greatly from increased usage.
Yes, the big boys of traditional finance are entering the crypto space. But that's not necessarily the end of the story -- heavyweight partners may be just what some of these cryptocurrencies needed. Invest accordingly, preferring stablecoin issuers over the stablecoins themselves, and stay tuned for further news. I'm sure there are plenty of crypto/banking partnerships brewing in the background.
Crypto is growing up before your eyes.
