Visa Inc (NYSE: V) announced a stablecoin prefunding pilot through Visa Direct at SIBOS 2025.
The program will allow businesses to use stablecoins to fund cross border payments. It aims to make international transactions faster and give financial institutions more flexibility in managing liquidity.
For decades, cross border payments relied on slow, costly systems that tied up capital for days. Businesses often had to hold large sums in advance, limiting operational efficiency. Visa’s pilot tests stablecoins as a funding source, aiming to reduce delays and improve access to liquidity.
“Cross border payments have been stuck in outdated systems for far too long,” said Chris Newkirk, president, commercial and money movement solutions for Visa.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.”
The pilot offers several practical benefits. Stablecoin prefunding allows businesses to free capital previously held in fiat accounts. Consequently, companies can keep money available while still covering payouts. In addition, treasury management becomes faster and more responsive. Institutions can move funds in minutes rather than days. Furthermore, stablecoins provide a predictable settlement layer. This reduces exposure to currency volatility and stabilizes treasury operations.
Here is how the program works. Businesses pre-fund Visa Direct with stablecoins instead of fiat. Visa treats these stablecoins as “money in the bank,” making funds immediately available for payouts. The pilot is aimed at banks, remitters, and financial institutions that need faster liquidity management across borders. Visa is initially working with select partners that meet the pilot criteria. However, the company plans to expand the program in 2026.
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Visa aims to simplify payments worldwide
Visa’s stablecoin pilot builds on its broader effort to modernize money movement. By combining the scale and trust of Visa’s global network with blockchain’s programmability, the company aims to simplify payments worldwide.
Additionally, it partners with leading payment providers to explore prefunding use cases. This approach could affect cross border payments for businesses, financial institutions, and consumers.
As global commerce grows more digital, quick access to funds becomes increasingly important. Visa’s pilot offers a step toward faster, more flexible cross border payments, without requiring businesses to pre-fund large fiat balances.
Over the past five years, Visa has steadily explored digital payment innovations. In 2020, the company began pilot programs for cryptocurrency and blockchain integration. Subsequently, Visa expanded partnerships with stablecoin issuers and fintech firms. In addition, it tested blockchain based settlement solutions with select banks. These early efforts focused on speed, security, and compliance.
Meanwhile, Visa improved internal infrastructure to handle digital assets alongside traditional payments. Furthermore, it educated financial partners on blockchain and stablecoin technology. In 2022 and 2023, pilot programs expanded to more regions, enabling faster cross border transactions. Consequently, Visa gained practical experience managing digital currencies at scale. Also, the company built frameworks to integrate stablecoins into its global network. These steps set the stage for its current Visa Direct pilot.
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