Visa, Mastercard Race to Tame a $253 Billion Crypto Threat (1)

A turf war is breaking out in the vast world of digital payments — and the incumbents are suddenly on defense.

Tech firms and crypto startups are moving in on territory long dominated by Visa Inc. and Mastercard Inc., powered by a new type of currency — the stablecoin — and a pitch merchants can’t ignore: lower fees, faster settlement and a way to bypass the big two altogether.

It’s a tech threat and a financial threat. Digital tokens, which are typically pegged to the dollar, allow consumers to pay merchants directly from their crypto wallets — without routing payments ...