Visa Bridges Traditional and Digital Finance with Stablecoin Speed

Visa Inc. has launched a stablecoin-based pilot program to modernize cross-border payments by enabling businesses to pre-fund transactions using digital assets, marking a significant shift in the global financial infrastructure. Announced at SIBOS 2025, the initiative leverages Visa Direct, the company’s real-time payments platform, to allow financial institutions, banks, and remittance providers to utilize stablecoins such as Circle’s USDC and EURC as a funding source. This move aims to reduce reliance on traditional fiat pre-funding, which often ties up capital and delays liquidity for businesses. By treating stablecoins as "money in the bank," Visa Direct can facilitate near-instant payouts, addressing longstanding inefficiencies in cross-border transactions Visa Direct Taps Stablecoins to Unlock Faster Funding for Businesses^[1].

The pilot addresses a critical pain point in global treasury operations: the need to maintain large fiat balances in advance to cover cross-border payments. By substituting stablecoins for fiat pre-funding, businesses can retain liquidity while ensuring payout coverage. This approach also mitigates exposure to local currency volatility, a key concern for institutions managing multi-currency operations. Visa estimates that the pilot could unlock working capital for participants, particularly during off-peak hours when traditional systems are inactive Visa Pilot Lets Banks Use Stablecoins for Global Payouts^[2]. The company has already settled over $225 million in stablecoin volume across its network, though this remains a small fraction of its $16 trillion annual payment volume. The pilot is currently limited to select partners meeting Visa’s criteria, with a broader rollout planned for 2026 Visa Embraces Stablecoins to Shake Up Cross-Border Payments^[3].

Visa’s collaboration with blockchain technology is part of its broader strategy to integrate stablecoins into its global payment infrastructure. The company has expanded support for additional stablecoins, including USDG and PYUSD, and blockchains like Stellar and Avalanche, enhancing interoperability across its network. This expansion allows Visa partners to settle transactions in both USD- and EUR-backed stablecoins, extending its crypto and treasury capabilities beyond the 25 fiat currencies it already supports . The initiative aligns with Visa’s vision of creating a "multi-coin, multi-chain foundation" to meet evolving partner needs, as emphasized by Rubail Birwadker, Global Head of Growth Products and Strategic Partnerships at Visa .

The pilot’s potential impact extends beyond operational efficiency. By enabling programmable money through smart contracts, Visa is exploring use cases such as automated loan disbursements and dynamic liquidity management. The Visa Tokenized Asset Platform, launched in 2024, already allows banks to mint, manage, and transact in stablecoins. This infrastructure could replace manual processes in financial services, reducing reliance on antiquated core ledgers . Additionally, Visa is expanding its stablecoin-linked card programs, partnering with entities like Bridge and Baanx to facilitate seamless fiat-to-stablecoin conversions for consumers and merchants.

Chris Newkirk, President of Commercial & Money Movement Solutions at Visa, emphasized the urgency of modernizing cross-border payments, which have long relied on outdated systems. "Visa Direct’s new stablecoins integration lays the groundwork for money to move instantly across the world," he stated, highlighting the platform’s ability to provide businesses with greater flexibility and choice Visa Direct Taps Stablecoins to Unlock Faster Funding for Businesses^[1]. The pilot’s success could reshape the payments landscape, reducing the dominance of correspondent banking models and challenging regional financial intermediaries to adapt to faster, lower-cost alternatives Visa Embraces Stablecoins to Shake Up Cross-Border Payments^[3].

Visa’s foray into stablecoins reflects its strategic pivot toward digital-first solutions in the face of growing competition from blockchain-native players. While the company acknowledges risks such as regulatory scrutiny and market volatility, it remains optimistic about stablecoins’ role in driving innovation. With plans to expand seven-day-a-week settlement capabilities and integrate additional blockchain networks, Visa is positioning itself as a bridge between traditional finance and emerging technologies. As the stablecoin ecosystem matures, the payments giant aims to leverage its scale and trusted infrastructure to facilitate seamless, secure, and global money movement .