Visa explores stablecoins for faster cross-border settlement

Stablecoins are moving further into mainstream finance, with Visa Direct unveiling a new pilot for faster cross-border payments.

Summary

• Visa Direct has launched a pilot allowing businesses to process cross-border payments with stablecoins.
• The pilot aims to make international transfers faster and more cost-efficient by unlocking liquidity and modernizing treasury operations.
• Global adoption is accelerating as the U.S., Europe, and Asia roll out regulatory frameworks for stablecoin use.

Visa Direct has launched a stablecoin prefunding pilot, allowing businesses to move money globally by using stablecoins. Per its September 30 announcement, the initiative will let firms use the digital assets for instant payouts instead of relying only on fiat currency.

This is designed to cut down on the long-standing delays and costs in global money transfers, where companies often have to park large sums in local accounts in advance to cover payouts.

By using stablecoins as a settlement layer, Visa says institutions could access liquidity more quickly and manage their treasury operations with more flexibility. Under the pilot, stablecoins deposited into Visa Direct are treated as cash-on-hand for payouts, potentially reducing the need for pre-deposited balances in multiple currencies.

“For decades, moving money across borders has depended on slow, costly systems that tie up capital in advance. With this pilot, Visa Direct is testing stablecoins as a new funding source. The goal: reduce friction, unlock faster access to liquidity and give financial institutions more flexibility in how they manage global payouts,” the release read.

The initiative is being tested with select partners, with plans to expand through 2026 if successful.

Visa’s stablecoin initiative comes amid global adoption

This move comes as the stablecoin industry sees rapid growth in adoption and regulation worldwide. In the United States, the bipartisan GENIUS Act was signed into law by President Donald Trump earlier this year, marking the first-of-its-kind federal framework for the sector, with requirements on consumer protection and regular audits.

Across Europe, several institutions are also embracing stablecoins. Nine major banks, including ING, Banca Sella, Danske Bank, UniCredit, SEB, and CaixaBank, are forming a consortium to launch a euro-denominated stablecoin regulated under the EU’s Markets in Crypto-Assets Regulation (MiCAR).

Globally, countries from Singapore and Hong Kong to Japan are bringing stablecoin oversight online and pushing adoption for remittances and cross-border digital payments, helping establish stablecoins as a tool for faster and secure transactions.

Currently, the total stablecoin market capitalization stands at about $307.8 billion, according to CoinMarketCap data. Tether (USDT) and Circle’s USD Coin (USDC) dominate the sector, accounting for more than 90% of the circulating supply.