Stablecoin-Linked Cards Gain Traction, but KYC Compliance Emerges as Bottleneck

Stablecoin-linked cards allow users to hold crypto assets while merchants continue to receive fiat currency, with transactions processed through established card networks such as Visa. They have become a bridge between blockchain-based funds and everyday spending. The key obstacle is that onchain addresses are largely pseudonymous and funds move across wallets and protocols, making it difficult for issuers to accurately identify customers and risks using banks’ existing KYC and AML rules.

PYMNTS reported on April 2, 2026, that Nium had launched a stablecoin card-issuing platform on March 30. Visa expanded its partnership with Stripe-owned Bridge that same month to cover more than 100 countries. StraitsX said on March 29 that transaction volumes had surged, though none of the three companies disclosed amounts. The following day, Federal Reserve Governor Michael S. Barr warned that inadequate customer identification in secondary markets could increase money-laundering and terrorist-financing risks.