Cuy Sheffield, Head of Crypto at Visa, recently asserted that stablecoin-backed cards are poised for more rapid growth than direct merchant acceptance. In a tweet, Sheffield stated, "Stablecoin-backed cards will grow faster than direct merchant acceptance. The spending user acts alone, and instantly gets access to millions of merchants." He emphasized that "Incentive design matters across the entire ecosystem," highlighting the strategic importance of user experience and accessibility in the evolving digital payments landscape.
Visa has been a significant proponent of stablecoin integration, with Sheffield at the forefront of the company's efforts to bridge traditional finance with the burgeoning crypto economy. The payments giant has actively pursued partnerships with various entities, including Circle, Paxos, Worldpay, Nuvei, Baanx, Stripe, and BVNK, to expand its stablecoin capabilities. These collaborations aim to enable issuers to settle stablecoin-linked cards directly with Visa, addressing what industry insiders term the "last mile problem" in cryptocurrency adoption.
The stablecoin market is currently valued at approximately $250-270 billion, but projections indicate substantial future growth. Analysts and industry leaders, including the US Treasury and MEXC COO Tracy Jin, anticipate the market could reach a valuation of $2 trillion by as early as 2026 or 2028. This projected expansion is primarily driven by increasing institutional interest, the integration of stablecoins into fintech platforms, and their growing utility in cross-border payments and remittances, particularly in emerging markets.
While stablecoins have shown immense potential for high-value transfers and business-to-business (B2B) transactions, their role in mainstream retail commerce, especially in developed markets like the US, remains limited. Sheffield himself noted that stablecoins currently don't solve many problems for US retail payments, with the majority of activity involving high-value transfers. However, reports from Q1 2025 indicated that stablecoin transaction volume has in some instances surpassed that of traditional payment networks like Visa and Mastercard combined, underscoring their growing significance as a settlement layer.
The focus on stablecoin-backed cards aligns with Visa's strategy to provide consumers with seamless access to their digital assets for everyday purchases across its vast merchant network. As regulatory clarity, such as the GENIUS Act, continues to emerge, and as more companies explore stablecoin issuance, the ecosystem for these digital currencies is expected to mature, further accelerating their adoption and integration into global financial systems.