Visa (NYSE: V) announced at SIBOS 2025 that it will begin testing a stablecoin prefunding program through its real-time payments platform, Visa Direct. The initiative allows businesses to pre-fund international transactions with stablecoins instead of fiat, aiming to cut costs, free up liquidity, and accelerate settlement times.

  • Traditional cross-border payments often rely on slow, costly systems that require banks to park large amounts of cash abroad.
  • With stablecoins, Visa says institutions can treat tokens like “money in the bank”, reducing the need to hold excess capital across multiple currencies.
  • This marks one of the first large-scale moves by a major US financial giant to integrate blockchain technology directly into its global network.

Pilot Details

  • Businesses will be able to prefund Visa Direct accounts with stablecoins for use in cross-border payouts.
  • Partners include select banks, fintechs, and remittance firms, with plans to expand in 2026.
  • Stablecoins used in the pilot are expected to be fully regulated under the US Genius Act, which has given issuers legal clarity for the first time.

Market Impact

  • Stablecoins, long criticized as a crypto gimmick, are now being adopted by mainstream players.
  • Matthew Tuttle, CEO of Tuttle Capital Management, said: “Stablecoins are moving from crypto gimmick to financial plumbing… It’s one of the reasons we think regional banks are in trouble.”
  • By embedding tokens into its payments stack, Visa is betting that collaboration—not competition—will define the next era of digital money.

Beyond the Pilot

Visa has also recently partnered with Onafriq in Africa to launch Visa Pay, enabling mobile money users in the DRC to access Visa wallets and e-commerce services. The stablecoin initiative now adds another layer, with President of Visa Commercial & Money Movement Solutions Chris Newkirk saying:

“Cross-border payments have been stuck in outdated systems for too long.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.”

With $7 trillion in annual cross-border flows, Visa’s stablecoin pilot could be the clearest sign yet that blockchain rails are set to merge with traditional finance.

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