Visa Pilots Stablecoin Settlements to Speed Up Global Payments

Visa has begun a pilot program allowing businesses to pre-fund their Visa Direct accounts with stablecoins rather than fiat. 

The company said Tuesday the initiative is designed to cut settlement friction, speed up access to liquidity, and give financial institutions more control over cross-border payouts.

Under the trial, stablecoin balances will be treated as equivalent to cash, enabling payouts without requiring firms to lock up large amounts of fiat in advance.

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Cross-border payments have been stuck in outdated systems for far too long. Visa Direct’s new stablecoins integration lays the groundwork for money to move instantly across the world, giving businesses more choice in how they pay.

Chris Newkirk, President, Commercial & Money Movement Solutions, Visa

This comes as an interesting change in narrative. Last year, Visa made headlines after publishing a report that showed over 90% of stablecoin transactions were made by bots.

The Growing Role of Stablecoins

Visa has been expanding its stablecoin strategy alongside other large payment processors. Growing regulatory frameworks in major markets have increased institutional interest in the use of crypto tokens pegged to fiat currencies, pushing TradFi players to accelerate adoption.

This is mostly thanks to the recent approval of the GENIUS Act, which gives stablecoin issuers a regulatory pathway to follow, prompting companies like Tether (USDT) to re-enter the US market. The company is seeking a US$500 billion (AU$758 billion) validation through a new capital raise.

Related: Australia’s Next Chapter in Digital Money: Why Yield-Bearing Stablecoins Matter

Even countries are moving forward with stablecoins. Recently, South Korea launched its KRW1, which is fully backed by the Won. While not the same in Australia, ASIC recently granted class relief to secondary distributors of stablecoins, though it only applies to AUDM.