Visa's Stablecoin Push Aims to Redefine Global Payment Speed and Efficiency

Visa Inc. has launched a pilot program to integrate stablecoins into its cross-border payment infrastructure, marking a significant step toward leveraging blockchain technology for business remittances. The initiative, announced in September 2025, allows financial institutions, banks, and remittance providers to pre-fund accounts using stablecoins—digital tokens pegged to fiat currencies like the U.S. dollar or euro—instead of traditional cash reservesVisa bets on stablecoins to speed up cross-border payments^[1]. This approach aims to accelerate cross-border transactions while reducing the need for businesses to lock capital in multiple currencies. Visa’s Commercial & Money Movement Solutions division highlighted the potential for this system to streamline global disbursements, particularly for corporations, fintechs, and crypto companiesVisa Tests Pre-Funded Stablecoins for Cross-Border Payments^[2].

The pilot utilizes Circle Internet Group’s USD Coin (USDC) and EUR Coin (EURC) as the stablecoin rails. By enabling real-time settlements through Visa Direct, the company’s platform for global payments, the program addresses inefficiencies in existing systems where underfunded accounts can lead to service delays. For example, remittance firms often face liquidity constraints during off-hours, such as weekends, when traditional banking systems are inactiveVisa Pilots Stablecoin Prefunding for Cross-Border Payouts^[3]. Visa’s solution allows clients to fund their network of global accounts in real time, ensuring uninterrupted service for end-users. Over 11 billion Visa cards, bank accounts, and digital wallets are connected to the platform across 195 countriesVisa Tests Pre-Funded Stablecoins for Cross-Border Payments^[2].

Regulatory clarity has been a critical enabler for this shift. The U.S. Genius Act, which established clear rules for stablecoin issuers, has bolstered institutional confidence in the technologyVisa bets on stablecoins to speed up cross-border payments^[1]. Visa’s head of product, Mark Nelsen, noted that the law transformed stablecoins from a “crypto gimmick” into a viable tool for financial infrastructureVisa bets on stablecoins to speed up cross-border payments^[1]. The company’s approach emphasizes collaboration over disruption, integrating stablecoins into its existing networks rather than replacing traditional systems. This strategy aligns with broader industry trends, as competitors like Mastercard and PayPal also explore stablecoin-based solutions for cross-border paymentsVisa pursues stablecoins for cross-border payments^[4].

The pilot’s potential impact extends beyond speed and efficiency. By reducing reliance on pre-funded fiat accounts, businesses can free up working capital and mitigate exposure to currency fluctuations. Visa’s platform already processes over $16 trillion in annual payments, with stablecoin volume reaching $225 million as of fiscal 2024Visa Tests Pre-Funded Stablecoins for Cross-Border Payments^[2]. While this remains a small fraction of total transactions, the company views it as a growing segment. Matthew Tuttle of Tuttle Capital Management highlighted that stablecoins could erode the market share of regional banks, prompting the launch of an inverse regional bank ETFVisa bets on stablecoins to speed up cross-border payments^[1].

Visa plans to expand the pilot in 2026, with limited availability expected by AprilVisa Pilots Stablecoin Prefunding for Cross-Border Payouts^[3]. The initiative builds on its broader strategy to diversify beyond consumer card payments into business-to-business (B2B) and business-to-consumer (B2C) money movement. However, challenges remain, including high fees for converting stablecoins into traditional payment systems and low consumer demand for such servicesVisa pursues stablecoins for cross-border payments^[4]. Visa’s CEO, Ryan McInerney, acknowledged that stablecoin settlements currently constitute a “very small portion” of its volume but emphasized the long-term potentialVisa pursues stablecoins for cross-border payments^[4].

The pilot reflects a broader industry shift toward programmable money and blockchain-based settlement layers. By positioning stablecoins as a complementary tool rather than a threat, Visa aims to reinforce its role as a “network-of-networks,” bridging domestic systems to facilitate cross-border flowsVisa pursues stablecoins for cross-border payments^[4]. As regulatory frameworks evolve and liquidity improves, the company’s ability to integrate stablecoins into its infrastructure could reshape the landscape of global payments, offering businesses a faster, more capital-efficient alternative to traditional remittance channelsVisa Tests Pre-Funded Stablecoins for Cross-Border Payments^[2].