Visa's Stablecoin Pilot as a Disruptive Shift in Cross-Border Payments

In 2025, Visa has launched a stablecoin prefunding pilot through its Visa Direct platform, positioning itself at the forefront of a transformative shift in cross-border payments. By enabling businesses to pre-fund global payouts using stablecoins like USDC and EURC, the initiative addresses long-standing inefficiencies in traditional systems, including high costs, slow settlement times, and capital immobilization. This analysis evaluates how Visa's stablecoin model could outperform conventional pre-funded currency accounts in cost, speed, and scalability, leveraging blockchain technology to redefine global financial infrastructure.

Cost Efficiency: Reducing Frictions and Capital Lock-Up

Traditional cross-border payments rely on pre-funded fiat accounts in multiple jurisdictions, requiring businesses to hold capital in advance to cover transactions. This model locks up liquidity and incurs operational costs, with the World Bank reporting an average remittance fee of 6.2% for retail transactions, according to a World Bank report. Visa's stablecoin pilot eliminates these frictions by allowing businesses to treat stablecoins as "money in the bank," enabling instant access to funds without the need to maintain fiat balances, as described in a Visa announcement.

According to The Cryptonomist, the pilot reduces interbank steps and manual reconciliations, which are major cost drivers in traditional systems. While exact cost savings percentages are not disclosed, the elimination of intermediary fees and capital immobilization suggests a potential reduction in expenses by several percentage points. For example, businesses previously spending $20–$50 per transaction on SWIFT or correspondent banking could see significant savings by leveraging stablecoins, according to CardRates.

Speed and Operational Agility: From Days to Minutes

Settlement times for traditional cross-border B2B payments typically range from one to three business days, with delays often attributed to FX conversions and compliance checks, according to a CoinDesk report. Visa's stablecoin model, however, enables near-instant settlement-minutes instead of days-by leveraging blockchain's programmability. This is particularly critical for SMEs and fintechs in emerging markets, where liquidity constraints and operational delays hinder growth.

A CoinTeeth case study highlights that the pilot's architecture allows businesses to convert stablecoins to local fiat at the point of payout, bypassing the need for pre-converted balances. This not only accelerates transactions but also reduces exposure to currency volatility, a key advantage over traditional systems.

Scalability: Blockchain's Role in Visa's Infrastructure

Scalability is a cornerstone of Visa's strategy. The company has integrated Solana's blockchain, which processes up to 2,000 transactions per second (TPS) during peak demand-far outpacing Ethereum's 12 TPS and Bitcoin's 7 TPS, as explained in a Visa deep dive on Solana. Solana's parallel transaction processing and low fees (<$0.001 per transaction) make it ideal for high-volume cross-border payments, as noted by CoinCentral.

Visa's traditional network already handles 65,000 TPS, but the integration of blockchain-based stablecoins introduces a hybrid model that combines speed with programmability. As noted in a MarketChameleon article, this approach supports complex payment scenarios while maintaining compliance with AML/CFT regulations.

Regulatory Tailwinds and Market Adoption

The U.S. Genius Act, which provided regulatory clarity for stablecoin issuers in 2025, has accelerated institutional adoption. Visa's pilot aligns with this trend, as businesses increasingly seek digital-first solutions. Early traction is evident: the pilot has already processed $225 million in stablecoin volume among select partners, according to Cryptopolitan.

Conclusion: A Digital-First Financial Infrastructure

Visa's stablecoin pilot represents a strategic pivot toward a digital-first financial infrastructure. By reducing costs, accelerating settlement times, and leveraging scalable blockchain networks, the initiative challenges traditional pre-funded currency accounts. As the program expands in 2026, its success could redefine cross-border payments, offering a blueprint for efficiency in a globalized economy.