Originally published at Forbes
With the announcement in December 2025 that Visa has expanded its USDC stablecoin settlements in the U.S. market, I believe we’ve reached the landmark we’ve all been patiently expecting: Stablecoins have entered the mainstream. This means, for the first time, American banks can settle transactions with Visa using a crypto-based stablecoin (Circle’s USD Coin) just as seamlessly as traditional dollars.
The expansion enables seven-day-a-week settlement and faster movement of funds for banking partners, all without changing the experience for everyday card users. In other words, stablecoins have graduated from the fringes of fintech to critical infrastructure for a global payments giant.
This move by Visa is not an isolated experiment. It builds on groundwork laid over the past few years: The company had been piloting stablecoin settlements across Latin America, Europe and Asia, and by late 2025, its pilot was already processing crypto payments at an annualized volume of over $3.5 billion. What was once viewed with skepticism by banks is rapidly becoming part of their own tool kit.
As Rubail Birwadker, Visa’s head of growth products and strategic partnerships, noted, “banking partners are not only asking about [stablecoin settlement]—they’re preparing to use it” because they want “faster, programmable settlement options” integrated into their existing operations.
From Clash To Collaboration
Rewind a year or two, and the narrative was very different. In my October 2025 Forbes Finance Council piece, I likened banks’ reaction to stablecoins to the seven stages of grief. Many in the banking lobby were alarmed by stablecoins’ potential to siphon away deposits. One association even floated an apocalyptic $6.6 trillion figure for potential outflows—a wildly misleading number (actual risks were perhaps a tenth of that). The real threat to banks wasn’t an immediate collapse, but the steady erosion of their competitive edge.
Rather than fighting inevitability, I argued, banks and crypto firms needed to move from denial and anger toward acceptance—and ultimately, partnership. Now, that balance is starting to take shape. Visa’s embrace of USDC shows that traditional finance can adapt and co-opt crypto technology to improve services instead of trying to bury it. Notably, even giants like JPMorgan have teamed up with crypto firms for settlement and custody initiatives—early signs that collaboration is becoming the new norm.
Not So Fast …
Progress wasn’t instantaneous. Stablecoin integration into the financial system moved slower than expected at first. As recently as 2024, Europe appeared to be ahead of the U.S. in crypto policy: The EU’s MiCA framework provided early legitimacy and clear rules, while the U.S. was still mired in skepticism. But 2025 brought a dramatic pivot.
The returning Trump administration made a sharp U-turn by halting any idea of a central bank digital currency and instead throwing its weight behind private stablecoins. This policy shift—late, but decisive—signaled that blockchain innovation could align with U.S. interests so long as it strengthened the dollar’s role.
Soon after, Congress passed a landmark stablecoin law (the GENIUS Act) that imposed 1-to-1 reserve backing, audits and disclosure standards on issuers. With guardrails now coming into place, leading stablecoin companies quickly positioned themselves to comply. Circle—the issuer of USDC—had already lined up top-tier banking partners (tapping JPMorgan to custody its reserves), signaling its readiness for stricter oversight.
Today, the global stablecoin market has swelled to roughly $161 billion in circulation, with transaction volumes in the trillions per year. Those figures would have seemed far-fetched not long ago. Adoption might have been slower than the hype predicted, but the direction of travel has turned out better than many in the crypto world feared.
Safeguarding The Dollar
Stablecoins’ triumph in the mainstream does not equate to a windfall for bitcoin or other volatile cryptocurrencies. The innovation being embraced by institutions is the digitization of dollars—not the replacement of them.
This trend is evident in the U.S. co-opting crypto technology to safeguard the dollar’s supremacy. Washington’s support for USD-pegged stablecoins ensured that the primary currency on blockchain rails remains the U.S. dollar, which was exactly the point. The U.S. made it “clear” it would rather oversee private stablecoins than allow alternatives that challenge the dollar.
While blockchain adoption suggests growing confidence in the crypto sector’s legitimacy, it hasn’t sent cryptocurrencies like bitcoin to the moon. Instead, stablecoins are reinforcing the status quo—extending U.S. currency dominance into the digital realm. Widespread stablecoin use may even reduce any urgency to adopt cryptocurrency as a day-to-day currency, since people can now easily transact in digital dollars. Stablecoins have become the approved face of crypto, whereas cryptocurrencies like bitcoin remain a more speculative asset outside the scope of government backing.
Europe’s Slower Path
The transatlantic contrast in stablecoin adoption is striking. The EU’s strategy has been to put rules in place first and let adoption follow. Under MiCA, any stablecoin in Europe must meet strict criteria—for instance, issuers need to maintain full reserves and detailed disclosures. These safeguards are laudable, but the rollout has been slow. It wasn’t until mid-2024 that Circle’s USDC became the first major stablecoin to win regulatory approval under MiCA. In the meantime, exchanges in Europe had to delist noncompliant coins like Tether’s USDT, effectively pushing users toward regulated, often U.S.-issued, alternatives.
European banks and policymakers are now moving to catch up. In late 2025, a consortium of nine major banks announced plans for a euro-backed stablecoin—a project aimed at providing “a real European alternative to the U.S.-dominated stablecoin market.” Yet observers noted that Europe “may already be too late.” After all, roughly 99% of global stablecoin value is in USD-pegged tokens today.
The New Financial Landscape
For those of us who have championed stablecoins and fintech innovation, Visa’s USDC initiative feels like vindication. The conversation has shifted from if stablecoins will go mainstream to how they will reshape finance. I have long maintained that stablecoins, if properly regulated, could strengthen the financial system rather than threaten it. Now we see major payment networks, banks and even regulators coming around to that view.
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