Visa & Mastercard Brush Off Crypto Threat—But Stablecoins Are Coming for Their Lunch
Credit card titans are waving away crypto's disruption like a pesky fly—just as stablecoins hit escape velocity.
The 'Nothing to See Here' Playbook
Visa and Mastercard execs spent Q2 earnings calls dismissing blockchain's threat to their trillion-dollar rails. Meanwhile, USD-backed stablecoin settlement volume surged 1,200% year-over-year. Classic legacy finance move: downplay the revolution until it's eating your revenue.
Wires Beat Swipes
Why wait 3 days for cross-border settlement when stablecoins clear in seconds? The math gets brutal for card networks: 0.3% blockchain transaction fees versus their 2-3% vig. (But sure, keep calling it 'niche.')
The Cynic's Take
Watching payment dinosaurs dismiss crypto is like Blockbuster mocking Netflix—until the late fees stopped rolling in. The real question isn't if stablecoins disrupt, but when Visa starts buying up stablecoin issuers at 10x revenue.
U.S. Dollar Comes Onchain as GENIUS Act Ushers in Digital Era
Their dominance remains firmly rooted in the U.S. economy, where the two firms handle roughly 70% of consumer transactions, per data from the Nilson Report. Past competitors like mobile payment apps and fintech upstarts have made little dent, while political efforts to regulate transaction fees have come and gone, often with minimal impact.
In the past year, Visa’s stock has climbed 31%, with Mastercard rising 24%. They currently trade at 28x and 32x forward earnings, respectively—valuations that reflect investor confidence. But with stablecoins now entering mainstream conversations, the question remains whether that confidence will hold as crypto adoption accelerates.
