Mizuho: Visa Emerging as the “Stablecoin of Stablecoins” in Expanding Blockchain Payments Network

Visa’s growing dominance in the stablecoin payments ecosystem positions it as a foundational player in blockchain-based finance, according to a new report from Japanese investment bank Mizuho.

The bank described Visa (V) as the “stablecoin of stablecoins,” arguing that the payments giant’s infrastructure has become central to the global stablecoin network. Visa’s expanding web of stablecoin-linked card programs — now spanning more than 130 initiatives across 40 countries — has seen spending rise fourfold year over year, underscoring its accelerating adoption in digital settlements.

Stablecoins, cryptocurrencies pegged to assets such as the U.S. dollar or gold, underpin much of the crypto economy by facilitating payments and cross-border transfers. Tether’s USDT and Circle’s USDC remain the largest by circulation.

Mizuho maintained an outperform rating on Visa with a $425 price target, citing the company’s strong position as stablecoin integration deepens. Visa shares traded around $343.30, down about 1% at publication time.

The analysts — Dan Dolev and Alexander Jenkins — said Visa could be one of the biggest beneficiaries of growing stablecoin adoption, supported by initiatives such as the GENIUS Act and its Visa Direct platform. The latter, which enables near-instant global payments, has grown about 50% annually since 2016 and now represents 15%–20% of worldwide debit volume, or more than $1.1 trillion.

With stablecoins proliferating — from USDT, USDC, and PayPal’s PYUSD to various central bank digital currency (CBDC) projects — the analysts said Visa’s ability to serve as a centralized hub for settlement provides a crucial competitive edge.

They also noted Visa’s recent efforts to allow banks to mint and burn their own stablecoins via its tokenized asset platform, signaling that individual tokens are increasingly interchangeable and that networks like Visa and Mastercard (MA) may capture the bulk of long-term value.

Visa currently supports four stablecoins — USDG, PYUSD, EURC, and USDC — but Mizuho believes this is “only the beginning.”

“As stablecoins become commoditized,” the report concluded, “Visa’s role as the ‘network of networks’ — the ‘stablecoin of stablecoins’ — will be a key driver of its long-term growth story.”

Mizuho also reiterated its underperform rating on Circle (CRCL), the issuer of USDC, with an $84 price target, calling the company overvalued. Circle shares slipped 3.45% to $131.37 following the note.