Visa is actively searching for a new partner with expertise in stablecoin settlements and over-the-counter services following Mastercard’s acquisition of BVNK, which formerly held that position.
Summary
- Visa aims to find a stablecoin settlement partner with licenses in the U.S., Canada, U.K., and Singapore.
- The confidential request outlines the need for multiple coin swaps, settlement services, and Open USD transaction support.
- Mastercard’s acquisition of BVNK on August 3 removed Visa’s previous stablecoin infrastructure partner.
- While Visa has an existing agreement with ZeroHash for stablecoin payouts, it does not cover all necessary licensed regions.
- Visa has yet to publicly comment on the RFP, potential candidates, or the timeline for partner selection.
The confidential request reportedly requires a provider with cryptocurrency exchange licenses across the U.S., Canada, the U.K., and Singapore, as noted in an August 18 report.
The documentation specifies support for various stablecoins, including the ability for swaps and settlement services. The selected partner would also need to facilitate transactions with Open USD.
Visa has opted not to comment on the reported process, and it has not publicly acknowledged the request or disclosed any potential candidates or timeline for selection.
Visa seeks one partner across four regulated markets
The reported licensing requirements suggest a strong focus on the U.S. A successful candidate must hold regulatory approval in four major financial markets, avoiding the reliance on multiple regional partners.
The report indicates that Visa is concentrating its search on a single stablecoin settlement and over-the-counter provider, although the name of the candidate remains undisclosed. There is no indication that Visa has finalized its decision or entered into a binding agreement as of now.
The requested services appear to encompass more than just token transfers. The documentation suggests a need for a company proficient in stablecoin conversions, providing institutional liquidity, and managing settlements across different jurisdictions.
These requirements may narrow down the selection to a limited number of infrastructure providers with established banking relationships, necessary licensing, and liquidity capabilities. They also imply that Visa favors a consolidated service model rather than separate arrangements in each country.
Mastercard’s BVNK acquisition created the reported gap
Mastercard completed its acquisition of BVNK on August 3, announcing that the company would bolster its infrastructure for stablecoin payments, settlements, and treasury operations.
The acquisition was priced at up to $1.8 billion, a figure first disclosed in March. At that time, BVNK stated its infrastructure facilitated approximately $30 billion in annual payment volume.
As previously reported, Mastercard concluded the acquisition after obtaining the necessary regulatory approvals, placing BVNK under the umbrella of one of Visa’s primary competitors.
Previously, BVNK served as Visa’s partner for stablecoin settlements, though neither Visa nor BVNK has publicly clarified how Mastercard’s acquisition has affected that prior commercial relationship.
Visa has current stablecoin programs in place
On August 5, Visa announced a collaboration with ZeroHash that allows eligible Visa Direct clients to fund accounts and execute payouts using stablecoins.
However, this new request emerged after the ZeroHash announcement and pertains to regions where ZeroHash reportedly lacks the necessary licenses sought by Visa. Thus, this inquiry seems to address a wider operational and geographic requirement.
Visa has also introduced the Visa Stablecoin Platform, which, according to a July release, will enable institutions to access, store, issue, redeem, and transfer stablecoins.
The initial asset supported by this platform is Open USD. In related developments, Visa launched its Open USD platform with select clients participating in an ongoing beta testing phase.
No public deadline for the selection process
Visa has not disclosed when it plans to choose a provider or commence expanded settlement services. Any resulting agreements would likely depend on licensing approvals, technical integrations, and commercial negotiations.
The potential partner would also need to interface with Open USD, which is backed by a consortium that includes Visa, Mastercard, and Coinbase. Over 140 companies were involved in the initiative at the time it was announced.
As reported by crypto.news, Visa embraces a multi-coin strategy and does not consider Open USD as a replacement for USDT or USDC. This perspective aligns with the reported requirements for a partner capable of supporting a range of stablecoins.
Until Visa publicly confirms the request or identifies a provider, the RFP and its specifications remain associated with documents reviewed by CoinDesk.
