Stablecoins are already making waves in the payments space. Increasingly viewed as an innovative payment method, stablecoins recently received a strong endorsement from Stanley Druckenmiller, one of the most successful investors of all time and a billionaire. He stated that over the next 10 to 15 years, the global payment system will largely operate on stablecoins.
Does this pose a significant threat to the two global payment giants, Visa (V) and Mastercard (MA)? Are these two stocks in trouble?
As mentioned, stablecoins are digital assets that run on blockchain networks but lack the volatility found in most other tokens. The core utility of all digital assets lies in their ability to transfer funds between any two parties with internet access, bypassing bank accounts and the traditional payment rails that underpin most global payments today.
If traditional rails are no longer needed, then all the intermediaries currently supporting traditional payment transactions—each taking a small fee from every transaction—may also become unnecessary. Blockchains also enable instant transfer and settlement of payments 24/7, making it easy to understand why there is optimism surrounding stablecoins.
Druckenmiller is not only a top expert at identifying future trends, but he has also historically not been a strong bull on cryptocurrencies. Nevertheless, he believes stablecoins will dominate because they are “efficient, fast, lower cost,” and “extremely useful in terms of productivity.” Stablecoins also offer flexibility, as they can be converted into other cryptocurrencies or fiat currencies.
The largest stablecoins today are Tether and USDC, with market capitalizations of approximately $184 billion and nearly $78 billion, respectively. Both track the U.S. dollar.
Stablecoin usage continues to surge. According to data, total global stablecoin transaction volume reached $33 trillion in 2025, a 72% increase from 2024. By 2030, stablecoin payment flows are projected to reach $56 trillion.
Visa and Mastercard operate the world’s two largest payment networks. In the 12 months ending September 30, total transaction volume across Visa’s network reached $16.7 trillion. These two networks have long possessed insurmountable moats, leading many investors to view them as “set-it-and-forget-it” stocks. Numerous challengers have tried to disrupt Visa and Mastercard, but all have failed.
Visa and Mastercard have long been aware of cryptocurrencies and have already begun integrating them into their businesses. In a presentation last July, Mastercard executives downplayed the threat of stablecoins and viewed them as an opportunity. At the time, Mastercard’s Chief Product Officer, Jorn Lambert, noted that about 90% of stablecoin transaction volume is still used for trading other cryptocurrencies, meaning the technology is not yet being used for traditional payments. Nevertheless, Mastercard already offers stablecoins for certain use cases and partners with companies seeking to use stablecoins. The three stablecoin use cases Mastercard foresees include issuing cards for buying and selling stablecoins, helping financial institutions offer stablecoins, and providing digital wallets for business-to-business (B2B) and cross-border transactions.
Although the payment giants’ executives are dismissive of the risks from stablecoins, those risks are, to some extent, real. Why would any business be willing to pay fees for every merchant transaction if a lower-cost payment option were available? Over time, Visa and Mastercard’s share of transactions could erode, or network volume could be lost.
That said, Visa appears focused on enabling interoperability between various crypto networks and traditional payment rails, while also adding value-added services such as payment technology and fraud prevention features. After all, if payments can be settled instantly, the ability to intercept fraud before it happens becomes critically important.
