Visa Initiative Allows Banks to Utilize Stablecoins for Worldwide 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 permits select partners to utilize Circle’s USDC (USDC) and EURC (EURC) as pre-funded assets for facilitating near-instant payouts, according to a Tuesday announcement.

“Cross-border payments have long been hindered by outdated systems,” stated Chris Newkirk, president of commercial and money movement solutions at Visa.

The aim is to minimize the necessity for pre-parked capital and modernize treasury operations. “The new stablecoin integration in Visa Direct establishes a foundation for instantaneous global money transfers, providing businesses with greater payment options,” Newkirk added.

Related: Colombians can soon save in stablecoins with new MoneyGram app

Visa pilot allows banks to utilize stablecoins for global payouts

This pilot is tailored for banks, remittance services, and financial institutions looking to enhance liquidity. Instead of 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 expected to unlock working capital, lessen exposure to currency fluctuations, and enhance predictability in treasury flows—especially during off-hours or weekends when traditional systems are inactive.

Visa reports it has settled more than $225 million in stablecoin volume to date, though this remains a minor fraction of its $16 trillion in annual payments. Currently, the pilot is available only to partners that meet Visa’s internal criteria, with plans for a wider rollout in 2026.

Cointelegraph reached out to Visa for a comment but had not received a response by publication time.

Related: SWIFT declares second sandbox connector tests a success for CBDC and more

Swift to develop blockchain for cross-border settlements

Visa’s initiative to employ stablecoins for cross-border payments followed closely after Swift announced its collaboration with Ethereum developer Consensys and over 30 financial institutions to establish a blockchain-based settlement platform for enabling 24/7 real-time cross-border payments.

Crypto payment firms are also gaining traction. Last week, stablecoin payments startup RedotPay achieved unicorn status after securing $47 million in a strategic round led by Coinbase Ventures, with support from Galaxy Ventures and Vertex Ventures.