Visa announced a new pilot program to modernize how businesses handle cross-border payments. The company is integrating stablecoins into Visa Direct, its global money movement platform, to give businesses a faster, more flexible way to manage their international payments.
Traditionally, businesses have had to pre-fund cross-border payments by holding large amounts of fiat currency, which ties up capital. This new pilot allows businesses to use stablecoins as a funding source, reducing friction and giving financial institutions more control over their liquidity.
“Cross-border payments have been stuck in outdated systems for far too long,” said Chris Newkirk, President, Commercial and Money Movement Solutions at Visa. “This stablecoin integration lays the groundwork for money to move instantly across the world, giving businesses more choice in how they pay.”
- Liquidity Unlocked: Businesses no longer need to park large fiat balances in advance, freeing up capital while still ensuring payments are covered.
- Modernized Treasury: The pilot allows financial institutions to move money in minutes instead of days, making liquidity management more dynamic and responsive.
- Predictability: Stablecoins provide a consistent settlement layer, reducing exposure to local currency volatility.
Businesses send stablecoins instead of traditional currency to cover payouts. Visa then treats these stablecoins as “money in the bank.” The pilot is designed for banks, remitters, and financial institutions that need faster, more flexible ways to manage liquidity across borders.
This initiative is part of Visa’s larger commitment to building a more flexible and modern payment ecosystem. By combining its global network with blockchain technology, Visa is helping to modernize cross-border payments for businesses and consumers worldwide.