Nikolas Sargeant
Visa has launched a pilot program enabling businesses to pre-fund Visa Direct with stablecoins rather than traditional fiat currency. The initiative targets banks and remittance providers looking to streamline their cross-border payment operations. Under the pilot, Visa treats stablecoins as available balances for payouts, functioning as "money in the bank" that businesses can use to send funds internationally.
The program allows participating businesses to send money abroad without locking up capital in traditional pre-funding arrangements. This approach could significantly improve liquidity management for companies that regularly process international transactions. By accepting stablecoins as a funding source, Visa is positioning itself at the intersection of traditional payment rails and blockchain-based digital currencies.
The move represents Visa's continued expansion into the stablecoin ecosystem, building on its existing infrastructure for processing digital asset transactions. Visa Direct already enables real-time payments between individuals and businesses across cards, wallets, and bank accounts. The integration of stablecoin pre-funding could make the service more attractive to crypto-native businesses and financial institutions operating in emerging markets.
As stablecoin adoption grows globally, major payment networks are increasingly exploring ways to incorporate these digital assets into their existing infrastructure. Visa's pilot program could pave the way for broader acceptance of stablecoins in mainstream business-to-business payments, potentially reducing friction in cross-border commerce while maintaining the speed and reliability of established payment networks.
Stablecoin Market Experiences Rapid Growth Amid Regulatory Clarity
The stablecoin sector is experiencing unprecedented expansion as regulatory frameworks take shape and institutional adoption accelerates. Visa recently expanded its stablecoin settlement platform to support four digital currencies including Global Dollar, PayPal USD, Euro Coin, and USD Coin across Stellar and Avalanche networks in addition to Ethereum and Solana. This infrastructure buildout reflects the payment giant's response to a rapidly evolving market landscape.
Industry experts note that on-chain stablecoin transaction volumes have already surpassed those of Visa and Mastercard combined, positioning stablecoins as the emerging "default settlement layer" for internet commerce. The regulatory environment shifted significantly when President Trump signed the GENIUS Act into law, establishing the first comprehensive federal framework for stablecoin issuance and operation in the United States.
However, Visa faces intensifying competition as major retailers like Walmart and Amazon reportedly explore launching their own stablecoins to benefit from reduced transaction fees and faster cross-border settlement times. Banking giants including Bank of America and JPMorgan are also developing stablecoin strategies, with JPMorgan recently partnering with Coinbase to allow customers to convert reward points to USDC. This competitive pressure underscores the disruptive potential of stablecoins to traditional payment processing models as institutional interest continues to surge.
