Visa has started a pilot program that lets banks and money transfer companies pre-fund global transactions with stablecoins instead of traditional currency.
The trial, announced during SIBOS 2025, allows chosen partners to load Visa Direct with Circle’s USDC
Chris Newkirk, President of Commercial and Money Movement Solutions at Visa, explained, “Cross-border payments have been stuck in outdated systems for far too long”.
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He added that the new setup helps businesses transfer money instantly and choose how they want to pay.
The system is designed for institutions that frequently encounter liquidity challenges when transferring funds across borders. Normally, they must set aside local currency in multiple regions, which ties up working capital.
With stablecoins, they can hold fewer balances while still sending money where it is needed.
Visa expects this model to improve cash flow, reduce exposure to currency fluctuations, and provide more predictable settlement, especially useful on nights, weekends, or holidays when banks are closed.
So far, Visa has processed over $225 million worth of stablecoin transactions. While this is still relatively small compared to its $16 trillion annual payment volume, the trial marks an important step in testing how digital tokens can be integrated into mainstream financial operations.
Recently, PayPal expanded its peer-to-peer (P2P) payment services with the launch of PayPal Links. How does it work? Read the full story.
