Visa Mandates Stablecoin Strategy by 2025, Partners with Yellow Card for Cross-Border Payments

Visa has announced a significant strategic shift, emphasizing the necessity for all money-moving institutions to develop a stablecoin strategy by 2025. This move underscores Visa's commitment to expanding its presence in the stablecoin market and leveraging blockchain technology to enhance cross-border transactions.

Visa's Senior Vice President for Central and Eastern Europe, Middle East, and Africa (CEMEA), Godfrey Sullivan, highlighted the importance of stablecoins in the future of financial transactions. He stated that every institution involved in money movement will need a stablecoin strategy by 2025. This vision is part of Visa's broader initiative to integrate stablecoin technology into its settlement systems, aiming to reduce costs and improve the efficiency of cross-border payments.

To achieve this goal, Visa has formed a strategic partnership with Yellow Card, an African fintech company. This collaboration will explore the application of stablecoin technology to facilitate treasury operations and liquidity management for cross-border transactions. The partnership aims to enable USD transactions across borders using blockchain technology, allowing for continuous settlements, including on weekends and holidays. This move is expected to significantly reduce settlement costs and enhance the overall efficiency of cross-border payments.

Visa has already seen over $225 million in stablecoin transactions settled through its network among participating clients. The partnership with Yellow Card will further investigate stablecoin use cases in jurisdictions where Yellow Card operates, with the intention of integrating these solutions with Visa Direct to improve cross-border payment services.

Visa's strategic move aligns with the global push to regulate stablecoins and the rapid adoption of blockchain-based payment solutions. By integrating stablecoin technology into its settlement systems, Visa aims to bring the scale, trust, and innovation needed to build the next generation of global payments. This initiative is part of Visa's broader vision to transform the financial landscape by leveraging the power of stablecoins and blockchain technology.

The partnership with Yellow Card is expected to enable faster and more accessible digital payments, transforming how money moves for more secure, efficient, and transparent payment solutions. This collaboration is set to explore the application of stablecoin technology to facilitate treasury operations and liquidity management for cross-border transactions. The partnership will investigate stablecoin use cases in jurisdictions where Yellow Card operates, with the intention of integrating these solutions with Visa Direct to improve cross-border payment services.

Visa's move to expand its stablecoin settlement system across the CEMEA region is a significant step towards achieving its vision of a stablecoin-driven financial ecosystem. By partnering with Yellow Card, Visa aims to leverage the power of stablecoins and blockchain technology to enhance the efficiency and security of cross-border payments. This initiative is expected to reshape the financial landscape by bringing the scale, trust, and innovation needed to build the next generation of global payments.