Visa has announced plans to launch a stablecoin prefunding pilot through Visa Direct, its global money movement platform that links more than 11 billion eligible cards, bank accounts, and digital wallets.
The initiative aims to provide businesses with a new method to move money internationally, improving liquidity and modernising treasury operations in the digital-first economy.
For years, cross-border payments have relied on systems that are often slow and costly, requiring capital to be held in advance.
Through this pilot, Visa Direct will test stablecoins as a new funding source, with the goal of reducing friction, enabling quicker access to liquidity, and offering financial institutions greater flexibility in managing global payouts.
“Cross-border payments have been stuck in outdated systems for far too long,”
said Chris Newkirk, President, Commercial & Money Movement Solutions at Visa.
“Visa Direct’s new stablecoins integration lays the groundwork for money to move instantly across the world, giving businesses more choice in how they pay.”
The use of stablecoin prefunding could allow businesses to free up capital that would otherwise be tied down in pre-funded fiat accounts, improving liquidity while maintaining coverage for payouts.
Institutions would be able to transfer money within minutes rather than days, creating more dynamic and responsive liquidity management.
Stablecoins also offer a predictable settlement layer, potentially reducing exposure to currency fluctuations and stabilising treasury operations, all while lowering the cost of increasing pre-funding frequency.
Under the pilot, businesses will send Visa stablecoins instead of fiat currency to fund payouts, with Visa treating these stablecoins as equivalent to “money in the bank.”
The programme is designed for banks, remittance providers, and other financial institutions seeking faster and more adaptable ways to manage liquidity across borders.
Visa is currently working with selected partners that meet the pilot criteria and intends to expand the programme in 2026.
Featured image credit: Edited by Fintech News Switzerland, based on image by jadethaicatwalk via Freepik
This article first appeared on Fintech News Singapore
