Visa and Mastercard Reportedly Want to Run Stablecoins, Not Fight Them. Here's What It Means for Investors.

During the first three months of 2026, Visa (NYSE: V) and Mastercard (NYSE: MA) combined to process a mind-boggling $7.1 trillion in total payment volume. And between them, there are 8.4 billion cards that are in use around the globe. These businesses dominate the payments landscape, making them critical to how commerce is done.

Having this formidable position doesn't mean they are resting on their laurels. In fact, these companies are leaning into innovation trends. And in the world of payments, stablecoins are the latest development, grabbing all the attention. After all, there is $303 billion in value in dollar-linked stablecoins, according to data from CoinGecko.

Instead of fighting this cryptocurrency, Visa and Mastercard reportedly want to run their own stablecoins. Here's what it means for investors in these financial stocks.

Image source: The Motley Fool.

Don't ignore the possible threat

Stablecoins promise to let holders transfer value nearly instantly and at low fees, leveraging the advantages of blockchain technology. For merchants, this is a winning solution, as money that would otherwise go toward accepting expensive card payments can flow straight to the bottom line, boosting profits. If widely adopted, stablecoins can undermine the lucrative business models of Visa and Mastercard.

The previously mentioned market of $303 billion in dollar-linked stablecoins is dominated by two major players. Tether (61% of the market) and USDC (25%) have a virtual duopoly. With a figure this big that has ballooned in recent years, Visa and Mastercard aren't ignoring the potential threat.

CoinDesk reported on June 3 that the two credit card giants, along with payment platform Stripe, are in talks to launch a joint stablecoin platform. Popular crypto brokerage and exchange Coinbase might also participate. The monster growth of USDT and USDC might have prompted this move.

The companies involved aren't new to these waters. Stripe closed its acquisition of Bridge, a stablecoin infrastructure enterprise, in February 2025 for $1.1 billion. In March this year, Mastercard announced it was buying BVNK, another stablecoin infrastructure provider, for $1.8 billion. As of late April, Visa was operating a stablecoin settlement pilot program across nine blockchains.

With stablecoins, Visa and Mastercard have identified an area that might be able to take payment volume away from them. So, they aim to build something that enables them to capture and control a larger share of the market, which could support their revenue and profit growth.

Network effects provide an unparalleled advantage

USDT and USDC are used in various settings. This includes digital asset trading, remittances, or within decentralized finance protocols. These two dominate the stablecoin market. However, boosting adoption in everyday transactional settings is the challenging part.

Here's where Visa and Mastercard have the clear edge. It's impossible to overstate just how powerful their network effects are. These platforms are entrenched at the foundational layer of the broader payments landscape. They connect consumers, merchants, and financial institutions, a distribution advantage that stablecoins simply do not have.

The Genius Act, which was signed into law in July 2025, provides a clear regulatory framework for dollar-backed stablecoins. Visa and Mastercard now have the confidence to operate with more intention within this nascent area of financial services.

Therefore, it seems much easier for Visa and Mastercard to successfully launch their own stablecoin platforms than for USDT and USDC to increase their usage and adoption. The former businesses have the upper hand as established incumbents.

Convenience and security are provided by Visa and Mastercard. But perhaps nothing matters more to stakeholders than trust, an overlooked but essential aspect of payments. Do consumers, merchants, and banks trust stablecoins? Time will tell.

Investors should watch

Shareholders in Visa and Mastercard should view their reported stablecoin projects as encouraging developments. These businesses aren't ignoring ongoing innovation. They are leaning in and trying to figure out how to play, a strategy they have deployed historically that has worked out well. For example, both companies have been leveraging artificial intelligence for decades to fight fraud.

These payment networks don't need to worry about cryptocurrency disruption just yet. But investors should still pay attention to any other stablecoin-related updates from Visa and Mastercard going forward, particularly as they relate to execution and adoption.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mastercard and Visa. The Motley Fool recommends Coinbase Global. The Motley Fool has a disclosure policy.