Visa Bets on Stablecoins to Speed Up Cross-Border Payments

Global payments giant Visa has unveiled plans for a pilot program that will allow businesses to use stablecoins to pre-fund international transactions, in what analysts are calling one of the most significant steps yet toward integrating blockchain-based assets into mainstream finance.

Announced at the SIBOS 2025 conference, the pilot will run through Visa Direct, the company’s real-time payments network. Instead of holding fiat currency in overseas bank accounts to cover international payouts, businesses will be able to deposit stablecoins, which Visa will treat as equivalent to cash. The company says this approach could unlock capital, speed up settlement times, and reduce reliance on traditional banking rails.

Stablecoins—digital tokens pegged to currencies like the U.S. dollar—have gained traction in global finance for their predictability and 24/7 transfer capability. Visa stressed that recipients of cross-border payments will continue to receive local fiat currency, not tokens.

“We see this as a bridge between the old and new rails of money movement,” said Cuy Sheffield, Visa’s head of crypto. “It’s about giving businesses more liquidity and flexibility while ensuring end-users are paid in the currency they expect.”

The pilot is slated to become available to selected partners by April 2026. Visa has not disclosed which stablecoins it will support but confirmed it would work only with issuers that meet stringent reserve and compliance standards.

The initiative could reshape the economics of cross-border payments. Businesses that traditionally had to “park” cash in multiple jurisdictions may instead hold stablecoins in a central pool, freeing up funds and reducing costs. For emerging markets such as Nigeria, Kenya, and parts of Latin America, where access to dollar liquidity is often constrained, the model could prove transformative.

Still, hurdles remain. Regulators are still defining rules for stablecoin use, and adoption will require seamless integration with banks and payment processors. Analysts also warn that counterparty and custody risks must be carefully managed to maintain trust.

Visa’s move comes as competitors, including Mastercard and SWIFT, experiment with blockchain-based payment solutions. If successful, the pilot could set a precedent for how traditional financial infrastructure adapts to the rise of programmable money.

For now, Visa is betting that stablecoins can do more than serve crypto traders—they may well become the backbone of global commerce in the digital age.

SOURCE: AGENCIES