Visa has kicked off a groundbreaking pilot program allowing banks, remittance firms, and financial institutions to pre-fund cross-border payments using stablecoins through its Visa Direct platform. Announced at Sibos 2025 on September 30, 2025, the initiative treats stablecoins like Circle’s USDC and EURC as “money in the bank,” enabling near-instant payouts without tying up traditional fiat in local accounts. This marks the first time Visa Direct integrates stablecoins for funding, aiming to slash settlement times from days to minutes and unlock more efficient liquidity management in the $10 trillion daily cross-border payments market.
For businesses grappling with outdated rails, treasurers optimizing global flows, and fintech innovators in the $200 billion stablecoin ecosystem, this pilot represents a pivotal upgrade. By partnering with Circle, Visa is bridging TradFi and crypto, potentially reducing costs by 50-70% and volatility exposure. With select partners already onboard, a broader rollout is slated for 2026. Let’s explore how it works, the benefits, and what it means for the future of money movement.
How the Pilot Works: From Stablecoin Funding to Instant Payouts
The Visa Direct stablecoin pilot streamlines the pre-funding process for cross-border disbursements. Traditionally, businesses must deposit fiat across multiple corridors, locking capital for days amid currency swings. Now, they can load stablecoins into Visa Direct, which Visa converts to local fiat for recipients—settling in as little as two minutes, 24/7.
Step-by-step flow:
- Pre-Funding: Institutions deposit USDC or EURC into Visa Direct as a standing balance.
- Initiation: Trigger payouts via API for salaries, remittances, or refunds.
- Settlement: Visa processes and converts to recipient’s local currency, bypassing weekends/holidays.
- Tracking: Real-time dashboard for liquidity and compliance.
Visa President Chris Newkirk emphasized: “Cross-border payments have been stuck in outdated systems for far too long. This lays the groundwork for money to move instantly across the world.” The pilot targets high-volume users like banks and remitters, with over $225 million in stablecoin volume settled to date— a fraction of Visa’s $16 trillion annual payments.
Benefits: Liquidity Unlock and Cost Savings in a Fragmented Market
This integration addresses key pain points in cross-border transfers, where SWIFT and correspondent banking incur 1-3% fees and 1-5 day delays. Stablecoins offer programmable, low-volatility funding, treated as cash equivalents by Visa for immediate availability.
Key advantages at a glance:
| Benefit | Impact | Example Use Case |
|---|---|---|
| 24/7 Instant Access | Settlements in minutes vs. days; no weekend halts | Remittances for gig workers in MENA/Asia |
| Liquidity Efficiency | Reduce pre-deposited capital by 50-70% | Corporates funding supplier payments in 100+ currencies |
| Cost Reduction | Lower fees (0.1-0.5% vs. 1-3%) | Banks handling $1B monthly cross-border volume |
| Volatility Shield | Stablecoin pegs minimize FX exposure | EURC for EU-Asia trade amid dollar swings |
The pilot’s focus on USDC/EURC ensures regulatory compliance, with Visa’s risk management handling AML/KYC. Early partners—unnamed but including remittance firms—report 40% faster treasury ops.
Why Now? Stablecoins Evolve from Gimmick to Global Plumbing
Visa’s timing aligns with stablecoins’ maturation: USDT and USDC now process $10 trillion annually, up 30% YoY, as jurisdictions like the EU (MiCA) and U.S. (GENIUS Act) formalize oversight. Sibos 2025—finance’s Davos—provided the stage, following Swift’s CBDC trials and Chainlink’s tokenized fund bridges.
Strategic drivers:
- TradFi Demand: 70% of banks pilot stablecoins for payments, per Deloitte, seeking speed without crypto volatility.
- Competitive Edge: Rivals like Ripple (ODL) and JPM Coin lag in scale; Visa’s $16T network amplifies reach.
- Policy Tailwinds: Trump’s pro-crypto stance and $3.87B ETH ETF inflows signal institutional comfort.
Challenges: Interoperability with legacy systems and peg risks (e.g., UST’s 2022 collapse) remain, but Visa’s fiat conversion mitigates.
Implications: A Faster, Smarter Global Payments Future
For businesses, the pilot unlocks $100-200 billion in idle liquidity annually, per McKinsey, streamlining $10 trillion daily flows. Banks/remitters gain a compliant on-ramp to blockchain, potentially cutting costs 50% for high-volume corridors like U.S.-India remittances ($100B market). Stablecoin Issuers like Circle see validation, with USDC volume up 20% post-announcement.
Broader ripple:
- Market Growth: Could add $50 billion in stablecoin adoption by 2026, per BCG.
- Regulatory Boost: Encourages global standards, reducing fragmentation.
- Investor Angle: Visa shares rose 2% on news; Circle (USDC issuer) up 5%.
As the pilot expands in 2026, expect more partners and currencies, turning stablecoins from niche to norm.
Conclusion: Visa’s Stablecoin Pilot – Revolutionizing Cross-Border Speed
Visa’s pilot to allow banks cross-border payments using stablecoins via Visa Direct is a game-changer, pre-funding with USDC/EURC for minute-fast, 24/7 settlements. By unlocking liquidity and slashing costs, it modernizes $10 trillion in flows, bridging TradFi and blockchain. As Sibos buzz fades, this could be the plumbing upgrade global payments crave. reuters
