Mizuho: Visa Becomes the ‘Stablecoin of Stablecoins’ as Blockchain Payment Network Expands
Visa’s rapid integration into the global stablecoin ecosystem is transforming it into a critical payments hub, according to a new report by Japanese investment bank Mizuho, which described the company as the “stablecoin of stablecoins.”
The bank’s analysts said Visa (V) has emerged as the backbone of stablecoin transactions, with its network of more than 130 stablecoin-linked card programs across 40 countries and spending up fourfold over the past year.
“Visa’s infrastructure now acts as the bridge connecting fragmented stablecoin networks, making it one of the most important beneficiaries of blockchain-based payments,” wrote Mizuho analysts Dan Dolev and Alexander Jenkins in the Wednesday note.
Stablecoins — cryptocurrencies pegged to fiat currencies or commodities such as gold — play a vital role in digital finance by enabling efficient payments and remittances. Tether’s USDT and Circle’s USDC dominate the sector, with newer entrants like PayPal’s PYUSD and various central bank digital currency pilots adding competition.
Mizuho reaffirmed its outperform rating on Visa, with a $425 price target, while shares traded around $343.30, down 1% on the day.
The analysts highlighted Visa’s long-running Visa Direct initiative, which has grown roughly 50% annually since 2016 and now represents about 15–20% of global debit transactions, worth more than $1.1 trillion. They said Visa’s growing integration with stablecoins positions it as the dominant intermediary connecting traditional and blockchain-based payment systems.
Visa currently supports USDG, PYUSD, EURC, and USDC and recently introduced functionality allowing banks to mint and redeem their own stablecoins on its tokenized asset platform. Mizuho said this innovation underscores Visa’s leadership as stablecoins become increasingly commoditized.
“As individual tokens like USDC or PYUSD grow interchangeable, Visa’s position as the centralized, trusted layer gives it the leverage to capture outsized value,” the analysts wrote, calling the company the “network of networks” within the evolving stablecoin landscape.
Meanwhile, Mizuho reiterated its underperform rating on Circle (CRCL), assigning an $84 price target and arguing that the USDC issuer remains overvalued. Circle’s shares fell 3.45% to $131.37 following publication.
