Visa has kicked off a new pilot program that allows banks and financial institutions to use stablecoins as cash-like assets for funding cross-border transfers.
The initiative, unveiled at SIBOS 2025, introduces the use of Circle’s USDC and EURC as pre-funded reserves in Visa Direct. According to Tuesday’s announcement, this enables near-instant settlement of international payouts.
“Traditional cross-border systems have been lagging behind for too long,” said Chris Newkirk, Visa’s president of commercial and money movement solutions. He added that the new stablecoin integration is meant to modernize treasury processes and give businesses more flexibility in how they move money.
How the pilot works
The program targets banks, remittance providers, and other financial institutions looking to enhance liquidity. Instead of locking up fiat currency across multiple payment routes, participants can deposit stablecoins into Visa Direct, which Visa treats as equivalent to cash for initiating transactions.
This model aims to free up working capital, lower risks tied to currency fluctuations, and improve predictability in treasury management — particularly during weekends or off-hours when traditional systems are unavailable.
Visa noted that it has already processed more than $225 million in stablecoin settlements. While this is a small portion compared to its $16 trillion annual payment volume, the company sees it as a key step toward broader adoption. The pilot is currently limited to select partners, with a wider launch expected in 2026.
Industry competition heats up
Visa’s announcement came just a day after Swift revealed its collaboration with Ethereum developer Consensys and over 30 global banks to develop a blockchain-based settlement platform aimed at 24/7 cross-border payments.
At the same time, crypto payment firms are attracting fresh investor interest. Stablecoin-focused RedotPay recently achieved unicorn status after raising $47 million in a round led by Coinbase Ventures, with support from Galaxy Ventures and Vertex Ventures.
Meanwhile, Bastion, another stablecoin infrastructure provider, secured $14.6 million in funding from a group including Coinbase Ventures, Sony, Samsung Next, Andreessen Horowitz, and Hashed.
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