- •Visa has launched a stablecoin pilot through Visa Direct to make cross-border payments faster, cheaper, and more efficient by using stablecoins as a settlement layer.
- •The initiative comes amid growing global adoption and regulation of stablecoins, with the U.S., Europe, and Asia all advancing frameworks to support their use in mainstream finance.
Visa is taking a significant step toward integrating blockchain technology into mainstream finance with its latest stablecoin pilot through Visa Direct. Announced on September 30, the initiative allows businesses to process cross-border payments using stablecoins, aiming to make international transfers faster, cheaper, and more efficient.
By leveraging stablecoins as a settlement layer, Visa seeks to modernize treasury operations and unlock liquidity for financial institutions, reducing the need to pre‑fund accounts in multiple currencies.
Traditionally, cross-border payments have relied on slow and expensive systems, forcing companies to hold large sums in local accounts to cover payouts. This approach ties up capital and introduces delays, often taking days to settle transactions.
Visa’s pilot addresses these issues by treating stablecoins deposited into Visa Direct as cash‑on‑hand, enabling near‑instant payouts.
For decades, moving money across borders has depended on slow, costly systems that tie up capital in advance. With this pilot, Visa Direct is testing stablecoins as a new funding source, the company said.
The pilot is currently being tested with select partners, with plans to expand globally through 2026 if successful. Visa’s move reflects broader trends in the stablecoin sector, which is experiencing rapid adoption and increasing regulatory clarity.
In the United States, the bipartisan GENIUS Act established the first federal framework for stablecoins, emphasizing consumer protection and regular audits. Europe has seen similar progress, with a consortium of nine major banks, including ING, UniCredit, and CaixaBank, developing a euro‑denominated stablecoin under the EU’s Markets in Crypto‑Assets Regulation (MiCAR).
Asia is also embracing the trend. Singapore, Hong Kong, and Japan are rolling out oversight measures for stablecoins, particularly for remittances and cross‑border digital payments, creating a more secure environment for institutional adoption.
These developments collectively position stablecoins as a viable alternative to traditional payment rails, capable of reducing settlement times from days to minutes while enhancing operational efficiency.
The market for stablecoins is substantial, currently valued at around $307.8 billion, with USDC and Tether accounting for over 90 % of the circulating supply. By integrating stablecoins into Visa Direct, the payment giant aims to combine the speed, transparency, and accessibility of digital assets with the reliability and reach of its global payment network.
If successful, this pilot could redefine cross‑border payments, setting the stage for a future where stablecoins play a central role in global finance.
Visa’s initiative demonstrates the growing convergence of traditional finance and blockchain technology, underscoring the potential of stablecoins to streamline international money transfers and modernize treasury management for institutions worldwide.