Visa has launched a pilot program that allows businesses to use stablecoins to fund cross-border payments, a move aimed at speeding up settlement times and reducing costs. This initiative integrates stablecoins into the Visa Direct platform, enabling near-instantaneous settlement for international transactions.
Context and Impact
The pilot allows banks, remittance firms, and other financial institutions to pre-fund their accounts using stablecoins instead of traditional currencies. By using stablecoins like Circle’s USDC and EURC as “money in the bank”, Visa enables businesses to make global payouts without locking up large sums of cash days in advance. This approach is designed to unlock liquidity, modernize treasury operations, and free up working capital for companies that operate across borders. Recipients always get paid in their local currency, ensuring a seamless experience.
Chris Newkirk, President of Commercial & Money Movement Solutions at Visa, stated, “Cross-border payments have been stuck in outdated systems for far too long… Visa Direct’s new stablecoins integration lays the groundwork for money to move instantly across the world, giving businesses more choice in how they pay”.
Implications
The initiative has several key implications for the market:
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Adoption and Integration: The pilot leverages Visa’s existing Visa Direct platform, making it easier for partners to integrate. Visa is working with select partners, and Circle’s USDC and EURC are the first stablecoins being tested. The program is expected to move into limited availability by April 2026.
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Efficiency for Treasuries: Pre-funding with stablecoins can shift settlement times from days to minutes, giving businesses faster access to liquidity and making cash management more dynamic.
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Regulatory Landscape: This move signals growing institutional acceptance of stablecoins, a shift bolstered by regulatory clarity such as the U.S. GENIUS Act. Visa’s approach focuses on incorporating stablecoin technology into existing payment flows rather than rebuilding systems from scratch.
This pilot represents a significant step in bridging traditional finance with digital assets. The focus now is on the pilot’s expansion and how its early efficiency gains can pave the way for broader adoption across the financial industry.
