V

Why Visa Stock Topped the Market on Thursday

Key Points

Visa (NYSE: V) is getting more deeply involved in one aspect of next-generation finance, and on Thursday, investors rewarded the company for the effort. They traded its stock up by more than 2%, which easily topped the 0.4% rise of the benchmark S&P 500 index.

Stable news

Visa announced it was teaming up with a peer to advance the usefulness of such products. It is collaborating with Brale, the developer of the very appropriately named Stable Coin, to explore stablecoin settlement using the cryptocurrency.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Person holding payment card while using a laptop PC.

Image source: Getty Images.

Visa will effectively test Stable Coin's effectiveness as a settlement mechanism in a "proof of concept" run through the Canton Network (a privacy-focused blockchain designed to handle the needs of institutional finance users). If the proof of concept is successful, the payment card giant will likely add Stable Coin to its network of accepted settlement currencies. Should that occur, Visa would have a way to settle large transactions instantly and privately.

In a press release touting the pilot program, Visa quoted its head of crypto, Cuy Sheffield, as saying, "Stablecoin settlement has shown how blockchain infrastructure can improve the speed and efficiency of money movement."

Saving time and money

As a leading payment card brand, Visa constantly processes a massive volume of transactions, ranging in size and scale. If it can clear those transactions instantly on a blockchain rather than have them held up by slow, legacy banking processes, it can drastically reduce idle capital and put those funds to more productive use.

The company seems to have its finger firmly on the pulse of next-generation solutions, as evidenced by this news, plus media reports on Wednesday that it's apparently part of a major new stablecoin consortium. I think this bolsters the buy case for the already very successful and highly profitable Visa.

Should you buy stock in Visa right now?

Before you buy stock in Visa, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Visa wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,632!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,316,532!*

Now, it’s worth noting Stock Advisor’s total average return is 959% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of June 4, 2026.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Visa. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Data is currently not available

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.