Representatives from Visa's cryptocurrency wing shared insights in a blog post regarding the rationale behind publishing these analytics. The data presented highlighted that stablecoin volumes have surpassed PayPal and are nearing Visa’s transaction levels, as indicated by a frequently shared graphic mentioned by ledgerinsights.com.
These Visa officials also noted that while stablecoin transactions include bot activity, such as arbitrage, liquidity provision, and market making, these activities differ from conventional settlement transactions. Removing bot-related data resulted in a reduction in 30-day transaction volumes, from USD 2.65 trillion to USD 265 billion. However, active stablecoin users have shown a steady increase, reaching 27.5 million.
It's important to acknowledge that the statistics provided focus solely on on-chain volume, while a considerable portion of crypto transactional activity occurs on exchanges. Tether remains a popular settlement stablecoin, with most of its transactions recorded within exchange books rather than occurring on-chain. Therefore, Visa's statistics may underrepresent Tether's true volumes and overstate USDC's proportion of transactions.
The motivation behind Visa's decision to publish these analytics prompts questions. Ledgerinsights.com further reports that, while speculation has arisen regarding Visa's potential launch of its stablecoin, it's unlikely given Visa's business model, which primarily caters to businesses rather than consumers. However, a possibility exists for Visa to introduce a stablecoin issuance and multi-chain management solution similar to Japan’s Progmat Coin. Additionally, Visa could potentially offer wallet services, considering its recent launch of a web3 loyalty solution and active involvement in tokenized deposits.
In April 2024, Visa announced that it entered the AWS Partner Network (APN) to enhance and simplify digital payments worldwide. Visa’s goal was to simplify access to its services for cloud-native fintech, financial institutions, and enterprise clients, thus working towards an overall improved digital payments ecosystem. By entering the APN, Visa was gearing up to provide its clients and partners, including cloud-native fintech companies, with access and integration capabilities to its services more efficiently and conveniently.
Additionally, the APN benefitted from Visa’s presence as it intended to solidify its position as a platform for fintechs and financial institutions to source digital technologies. When it comes to Visa, the move reflected its commitment to simplifying access to global digital payments, advancing the spread of its services for all participants in the global payments landscape.
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