Visa tests pre-funding in stablecoin for cross-border payments
Visa tests pre-funding in stablecoin for cross-border payments
Visa is experimenting with stablecoin pre-funding on Visa Direct to make cross-border payments faster and more predictable. The pilot allows depositing funds in pegged tokens, accounted for by Visa as “money in the bank”: essentially, funds immediately available for global payouts. Announced at SIBOS on September 30, 2025, and described by the specialized press, the initiative involves selected partners and aims to leverage Visa's global infrastructure that connects over 11 billion eligible cards, accounts, and wallets. Bloomberg has detailed the program and Visa's official documentation explains the integration logic with the existing network Visa. In a context where the average cost of retail remittances exceeds 6.2% of the amount sent (World Bank), the initiative aims to free up liquidity and simplify operational steps. Updated September 30, 2025. In the traditional model, companies maintain balances in fiat across multiple accounts and jurisdictions to ensure payments. With the pilot, however, prefunding occurs in stablecoin which Visa treats as immediately available funds, reducing the need to lock up capital in multi-currency accounts. This results in greater visibility on balances and, for treasury teams, a more robust control over cash flows.
Article Summary
**Visa Launches Groundbreaking Stablecoin Pre-funding Pilot for Cross-Border Cryptocurrency Payments** Visa is revolutionizing cross-border payments through a innovative stablecoin pre-funding pilot program on Visa Direct, announced at SIBOS 2025. This blockchain-powered initiative enables companies to deposit funds in pegged cryptocurrency tokens, which Visa treats as immediately available "money in the bank" for global payouts across its massive network of 11 billion eligible cards, accounts, and wallets. The pilot addresses critical pain points in traditional remittances, where average costs exceed 6.2% according to World Bank data. By leveraging stablecoin technology, Visa eliminates the need for companies to maintain multiple fiat currency balances across jurisdictions, significantly reducing capital lock-up requirements. This DeFi-inspired approach provides treasury teams enhanced cash flow visibility and control while streamlining operational processes. The integration with Visa's existing infrastructure represents a major step toward mainstream cryptocurrency adoption in financial services. Selected partners are participating in this transformative program that could reshape how businesses handle international money transfers, making cross-border payments faster, more predictable, and cost-effective through blockchain technology.
