Visa Initiative Allows Banks to Utilize Stablecoins for International Payments

Visa has initiated a pilot program enabling banks and financial institutions to pre-fund cross-border payments using stablecoins.

Unveiled at SIBOS 2025, the Visa Direct stablecoin pilot allows select partners to utilize Circle’s USDC (USDC) and EURC (EURC) as pre-funded assets for near-instant payouts, as per a Tuesday announcement.

“Cross-border payments have been mired in outdated systems for far too long,” stated Chris Newkirk, president of commercial and money movement solutions at Visa.

The initiative aims to decrease the necessity for funds to be held in advance and modernize treasury operations. “The integration of stablecoins with Visa Direct sets the stage for money to move instantly worldwide, providing businesses with greater flexibility in their payment methods,” Newkirk added.

Related: Colombians will soon be able to save in stablecoins via new MoneyGram app

Visa pilot allows banks to utilize stablecoins for global payouts

This pilot is designed for banks, remittance services, and financial institutions aiming to enhance liquidity. Rather than locking up fiat currencies across various corridors, participants can fund Visa Direct with stablecoins, which Visa classifies as cash equivalents for initiating payouts.

Pre-funding with stablecoins is anticipated to free up working capital, mitigate exposure to currency fluctuations, and enhance predictability in treasury flows, particularly during off-hours or weekends when traditional systems are inactive.

Visa reports it has settled over $225 million in stablecoin volume to date, although this remains a minor share of its $16 trillion in annual payments. Currently, the pilot is limited to partners that satisfy Visa’s internal criteria, with plans for a broader rollout anticipated in 2026.

Cointelegraph contacted Visa for comments but did not receive a response before publication.

Related: SWIFT announces successful second sandbox connector tests for CBDC and more

Swift to develop blockchain for cross-border settlements

Visa’s initiative to incorporate stablecoins for cross-border payments was announced a day after Swift declared its collaboration with Ethereum developer Consensys and over 30 financial institutions to create a blockchain-based settlement platform designed to enable real-time cross-border payments 24/7.

Crypto payment companies have also gained momentum. Last week, stablecoin payment startup RedotPay achieved unicorn status after raising $47 million in a strategic funding round led by Coinbase Ventures, with additional support from Galaxy Ventures and Vertex Ventures.