Visa bets on stablecoins to speed up cross-border payments

Visa has launched a pilot program to test stablecoin payments in cross-border transactions, addressing one of the biggest frictions in global finance liquidity trapped across markets. By introducing prefunding through tokenized dollars and other regulatory-compliant stablecoins, Visa seeks to streamline the settlement process, cut reliance on multiple intermediaries, and improve efficiency for enterprises moving money internationally.

This initiative also comes as U.S. regulators provide clearer guidelines for stablecoin issuers under the GENIUS Act, giving large players more confidence to innovate. For corporate treasurers, the potential upside is faster access to funds with lower float requirements, easing the burden of holding capital in multiple jurisdictions. If successful, Visa’s stablecoin pilot could reshape the infrastructure for global disbursements and set a standard for traditional financial institutions exploring digital assets.

What the Visa stablecoin pilot for cross-border payments changes

Instead of depositing fiat into local accounts ahead of payouts, participating institutions can post approved stablecoins as prefunding, then draw down balances to complete local disbursements. Visa argues this can shorten funding cycles and free working capital otherwise parked in multi-currency nostro accounts.

“The Genius Act changed everything… Before that regulatory clarity, all the big institutions were sort of on the fence,” said Mark Nelsen, head of product for Visa’s Commercial & Money Movement Solutions, in an interview.der payments be rolled out?

Visa is onboarding a limited set of unnamed partners now and says the pilot will expand next year. The company positions the project as an addition to its existing rails (e.g., Visa Direct), not a wholesale replacement, echoing prior experiments with USDC settlement begun in 2023. Specific stablecoins, chains and geographies for the prefunding pilot were not disclosed at launch. Reuters+1

Why now: U.S. GENIUS Act unlocks adoption

The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act Public Law 119-27, enacted 2025-07-18 requires fully reserved backing, regular disclosures and licensing/oversight for permitted issuers, providing the regulatory clarity large institutions sought. Legal commentators and federal notices indicate implementation rulemaking is underway.

Industry reaction and competitive landscape

Stablecoins’ utility for instant, always-on transfers has pushed incumbents to adapt. SWIFT announced plans to launch its own blockchain platform to support tokenized payments, highlighting competition and convergence across networks. Meanwhile, investor Matthew Tuttle argued stablecoins are evolving into “financial plumbing,” a trend he links to pressure on regional banks.

Regulators remain cautious: the Bank of England has steered UK banks toward tokenised deposits as a safer, integrated alternative while stablecoin rules are finalized. That stance underscores the policy debate Visa and peers must navigate as pilots scale.

Risks and open questions

Key unknowns include which stablecoins and blockchains Visa will accept for prefunding, FX treatment, cut-off times, on/off-ramp providers, and safeguards around reserve attestations and wallet security. Regulators may scrutinize liquidity, AML/CFT controls and potential disintermediation of bank deposits.

<section id=”howto”> <h3>How to evaluate readiness for stablecoin-based prefunding</h3> <ol> <li id=”step1″><strong>Step 1:</strong> Map your current cross-border payout flows, currencies and average prefunding levels by market.</li> <li id=”step2″><strong>Step 2:</strong> Identify corridors with frequent liquidity traps and quantify working-capital days saved by tokenized prefunding.</li> <li id=”step3″><strong>Step 3:</strong> Confirm regulatory permissions for stablecoin usage in each jurisdiction and your counterparty’s licensing under the GENIUS Act or local regimes.</li> <li id=”step4″><strong>Step 4:</strong> Establish wallet custody, key management, and treasury policies (limits, approved coins/chains, reconciliation cadence).</li> <li id=”step5″><strong>Step 5:</strong> Pilot with low-risk corridors, define incident playbooks (depegs, chain congestion), and measure SLA/FX/fee outcomes vs. baseline.</li> </ol> <p><em>Note: Process may vary by jurisdiction/provider. Confirm requirements before acting.</em></p> </section>

Context & Analysis

Visa’s approach mirrors a pattern: rather than competing with token rails, large networks integrate them to augment speed and liquidity while preserving distribution and compliance tooling. The pilot also hedges against scenarios where regulated stablecoins absorb more wholesale payment flows an outcome accelerated by clearer U.S. rules and rival network moves (e.g., SWIFT). Execution risk centers on partner selection, regulatory harmonization and the operational nitty-gritty of treasury integration.

Conclusion

If initial results confirm quicker settlements and reduced idle liquidity, stablecoin prefunding could emerge as a mainstream tool for enterprise cross-border payments. The model would give treasurers more flexibility, helping them optimize capital efficiency while maintaining access to faster global disbursements.

Rather than replacing existing rails, stablecoins are expected to operate alongside cards, wires, and tokenized deposits. This blended approach will likely evolve as regulatory clarity improves in major markets, including the U.S., UK, and EU. Together, these policy frameworks could support stablecoins as a reliable, compliant option within the broader payments ecosystem.

FAQs

Q : What is Visa’s new pilot?

A : A test program allowing institutions to pre-fund cross-border payouts with approved stablecoins instead of cash held in local accounts.

Q : Why now?

A : The U.S. GENIUS Act created a federal framework for payment stablecoins, boosting institutional confidence and enabling compliant pilots.

Q : Which coins and chains will Visa use?

A : Not disclosed at launch; Visa has previously piloted USDC settlement and says it plans broader coin/chain support.

Q : Does this replace existing rails?

A : No. Visa positions stablecoins as complementary to existing payment flows like Visa Direct.

Q : How could this affect banks and fintechs?

A : It may reduce trapped liquidity and speed payouts; however, regulators are weighing systemic risks and alternatives like tokenised deposits.

Q : Will costs fall?

A : Potentially, but outcomes depend on corridor, FX, network fees and partner arrangements details pending pilot results.

Q : Is the exact phrase “Visa stablecoin pilot for cross-border payments” the official program name?

A : No; it’s a descriptive SEO phrase. Visa has not announced a formal product name for the prefunding pilot.