Stablecoins vs. Visa: A Global Reality Check

Christina Rea-Baxter, Esq., CFCS
3 days ago
3 min read

Stablecoins are no longer a side project in the cryptocurrency world. In many markets, they're functioning as parallel payment rails — quietly competing with the likes of Visa by enabling fast, affordable, cross-border transactions.

But how real is this disruption? Where are stablecoins actually used, who’s leading the charge, and how much of this growth is built on solid ground versus speculation?

Let’s break it down.

Global Usage: Beyond Speculation

Stablecoins like USDT and USDC are now deeply embedded in everyday economic activity — especially in regions underserved by traditional finance.

Remittances (LATAM & Africa)

In inflation-stricken economies like Argentina and Nigeria, stablecoins are a lifeline. USDT and USDC are used to preserve value and move money across borders via peer-to-peer networks. Platforms like Bitso and Binance have brought remittance fees down from 6–8% to as low as 1–2%.

Exchange Infrastructure (Asia & Europe)

Stablecoins dominate trading pairs on exchanges in Korea, Japan, and Singapore. Many platforms use them to bypass SWIFT altogether, offering faster settlement and lower counterparty risk.

Merchant Payments (Southeast Asia)

E-commerce and gaming platforms in Vietnam and the Philippines are increasingly accepting stablecoins. In areas with limited credit card access, merchants cash out via local crypto brokers.

DeFi Liquidity (Global)

Protocols like Aave and Compound turn stablecoins into decentralized savings and lending instruments. The total value locked (TVL) in stablecoins within DeFi often surpasses deposits at regional banks.

Regional Breakdown: Who Leads Where?

Different coins dominate different regions:

Who’s Really Competing?

Despite the buzz around new entrants, the market is effectively a duopoly:

90% of the market share belongs to USDT and USDC

USDT (Tether) — ~60% market share
USDC (Circle/Coinbase) — ~30%
Everyone else — The remaining 10%, mostly in DeFi or niche ecosystems

What about the rest?

BUSD is largely sunset after U.S. regulatory actions.
DAI remains relevant in DeFi, but lacks real-world liquidity.
USTv2 and others are still recovering from previous crashes and trust issues.

If you're building for scale and liquidity, you're building around USDT or USDC.

Stablecoins vs. Visa: A Fair Comparison?

Are Stablecoins vs Visa a fair comparison? Let's look at how stablecoins really stack up against the global payments giant.

Verdict: Stablecoins aren't replacing Visa — yet. But in digital-first, cross-border, or high-fee environments, they’re an increasingly viable alternative.

Compliance: The Real Bottleneck

For all the upside, compliance remains the main hurdle to mainstream adoption.

KYC/AML Gaps

Most stablecoin activity happens outside traditional merchant onboarding processes. For broader adoption, robust KYC and risk frameworks will be key.

Regulatory Patchwork

U.S.: FinCEN treats issuers as money service businesses — expect increased oversight.
EU: MiCA regulations will enforce reserve requirements and licensing by 2024.
Asia & LatAm: Jurisdictions range from permissive (Singapore, UAE) to restrictive (India, China).

Due Diligence Risks

Tokens linked to politically exposed persons (PEPs) or sovereign actors add complexity for institutions.

Smart Contract & Audit Risk

Whether DeFi-native or centralized, real-time audits and reserve transparency are non-negotiable.

Takeaways for Compliance & Fintech Leaders

Real-world usability beats theoretical design: Adoption depends on easy onboarding and offboarding.
Build on liquidity: USDT and USDC are the rails that matter — at least for now.
Stay regulation-ready: MiCA-style licensing and FDIC-style reserve standards are on the horizon.
Governance earns trust: Disclosures, attestations, and clear oversight are your gateway to banking partnerships.

Closing Thoughts

Stablecoins aren’t just promising an alternative to traditional payment rails — in many parts of the world, they’re already delivering one. But with that evolution comes new layers of complexity, especially for compliance leaders and payment innovators navigating uncharted regulatory waters.

To stay competitive and credible in this emerging ecosystem:

Focus on stablecoins with real-world liquidity and institutional backing
Prioritize infrastructure that supports onboarding, offboarding, and clear audit trails
Stay ahead of fast-evolving global regulations, from MiCA to FinCEN
Lead with transparency and governance to earn trust across both traditional and decentralized finance

As the line between fintech and crypto continues to blur, stablecoins may not fully rival Visa yet, but for cross-border, digital-native use cases, they’re already rewriting the rulebook.