Global payments giant Visa has launched a pilot initiative enabling financial institutions and money transfer services to utilize stablecoins for upfront funding of international transactions, replacing the need for traditional fiat currencies.
The pilot program, unveiled at SIBOS 2025, allows selected partner firms to fund their Visa Direct accounts with Circle’s USDC
According to Chris Newkirk, who heads Commercial and Money Movement Solutions at Visa, “The cross-border payments sector is long overdue for innovation, having been bogged down by archaic systems.”
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He further noted that the upgraded system empowers businesses with the ability to execute instant money transfers while providing payment method flexibility.
The platform primarily targets organizations that frequently face liquidity issues during international fund transfers. These entities typically need to maintain reserve balances in various local currencies, which can restrict the availability of their working capital.
By utilizing stablecoins, these firms can reduce their reserve holdings and still ensure smooth international money transfers.
Visa anticipates that this new approach will optimize cash management, mitigate exposure to exchange rate risks, and deliver more reliable settlement outcomes, especially during off-peak banking hours such as nights, weekends, and public holidays.
To date, Visa reports it has processed in excess of $225 million in stablecoin-denominated transactions. While this volume is still small in contrast to Visa’s overall $16 trillion annual payment volume, this trial signifies a critical advancement in determining how digital tokens can become more integrated into established financial operations.
In other news, PayPal recently enhanced its peer-to-peer (P2P) payment offerings by introducing PayPal Links. Intrigued? Delve into the complete story here.