Visa Started a Stablecoin Pilot in Cross-Border Payments

Visa Accelerates Payment Process with Stablecoin

Visa Inc. announced that it has launched a prepayment pilot for the use of stablecoins in cross-border payments. With this new application, Visa Direct will enable businesses to transfer money through its real-time payment platform without having to hold large amounts of fiat currency.

The company stated on Tuesday, "The goal: to reduce friction, provide faster access to liquidity, and offer financial institutions greater flexibility in managing global payments." Businesses will now pre-fund their Visa Direct accounts with stablecoins instead of fiat currency. In this process, Visa will accept these funds as "money in the bank"; meaning these funds will be immediately available for payments.

Visa, like many of its competitors in traditional financial payments (TradFi), continues to accelerate its plans regarding stablecoins. Stablecoins are defined as crypto tokens pegged to a fiat currency or a traditional financial asset. Interest in these assets has increased with major jurisdictions launching official regulatory regimes for stablecoins.