Visa bets on stablecoins to speed up cross-border payments

Visa is revolutionizing cross-border payments by embracing stablecoins as a funding mechanism for international business transactions. The global payment giant announced Tuesday it will begin testing a groundbreaking system that eliminates the need for businesses to pre-deposit cash in local accounts, instead allowing direct stablecoin usage for cross-border settlements.

This strategic move positions Visa at the forefront of cryptocurrency adoption in traditional finance, potentially disrupting the $150 trillion global payments market. By leveraging blockchain technology and digital assets, Visa aims to reduce settlement times from days to minutes while cutting transaction costs significantly.

The stablecoin integration represents a major shift toward mainstream DeFi adoption, as businesses can now utilize cryptocurrency-backed solutions for international commerce. This development could accelerate institutional crypto adoption and strengthen the bridge between traditional banking and decentralized finance ecosystems.

Visa's blockchain-powered payment solution addresses long-standing pain points in cross-border transactions, including high fees, slow processing times, and complex currency conversions. The pilot program signals growing confidence in cryptocurrency infrastructure and could inspire other payment processors to integrate digital assets into their platforms.