Imran Ahmed
San Franscisco: Visa has unveiled a stablecoin prefunding pilot under its Visa Direct platform, marking a significant step toward faster and more flexible cross-border payments. The initiative aims to simplify global money movement for businesses by reducing friction and freeing up liquidity long tied up in traditional pre-funding systems.
Visa Direct connects more than 11 billion eligible cards, bank accounts, and digital wallets globally. With the pilot, Visa will test the use of stablecoins as a funding source, allowing businesses to send digital assets instead of fiat currency to cover international payouts.
“Cross-border payments have been stuck in outdated systems for far too long,” said Chris Newkirk, President of Commercial & Money Movement Solutions at Visa. “Visa Direct’s stablecoin integration lays the groundwork for money to move instantly across the world, giving businesses more choice in how they pay.”
Key Benefits
- Liquidity Unlocked: Businesses no longer need to park large fiat balances in advance, keeping capital active while ensuring payouts are covered.
- Faster Treasury Operations: Institutions can move funds in minutes instead of days, making liquidity management more agile.
- Predictability: Stablecoins provide a consistent settlement layer, reducing exposure to currency volatility.
- Lower Costs: Increased prefunding frequency without added expense.
How It Works
Through the pilot, Visa will treat stablecoins sent by businesses as equivalent to “money in the bank.” The initiative targets banks, remittance providers, and financial institutions seeking more efficient ways to manage global liquidity.
The company is currently collaborating with select pilot partners, with plans to expand the program in 2026.
The stablecoin pilot builds on Visa’s broader vision of creating a digital-first, programmable payments ecosystem that blends the scale and trust of Visa’s global network with blockchain innovation.
Visa’s move underscores the growing role of digital currencies in traditional finance and reflects an industry-wide shift toward real-time, low-cost cross-border transactions.
