The pilot program will test the use of stablecoins as a new funding source for global payouts, aiming to reduce the friction and costs associated with traditional cross-border payment systems, which often require capital to be tied up in advance.
According to Visa, the stablecoin prefunding option is intended to free businesses from the need to park large fiat balances in advance, allowing them to keep capital working while still ensuring payouts are covered. By using stablecoins, institutions can move money in minutes instead of days, which makes liquidity management more dynamic and responsive.
The use of stablecoins also provides a consistent settlement layer, which helps to reduce exposure to local currency volatility and stabilise treasury operations. The new capability is targeted at banks, remittance companies, and other financial institutions that require faster and more flexible ways to manage liquidity across borders.
“Cross-border payments have been stuck in outdated systems for far too long,” said Chris Newkirk, president of commercial and money movement solutions at Visa. “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.”
In the pilot program, businesses will send stablecoins to Visa instead of fiat currency to cover their payouts. Visa will then treat these stablecoins as a prefunded balance. The company is currently working with a select group of partners that meet the pilot criteria, with plans to expand the program in 2026.
The Visa Direct stablecoin pilot is part of Visa’s broader commitment to building a faster and more flexible money movement network for the digital-first world. The company stated that by combining the scale of its global network with the programmability of blockchain technology, it is helping to modernise cross-border payments for businesses, financial institutions, and consumers.
Read more on The Fintech Times
