Visa’s Stablecoin Schemes: A Cash Alternative or a Crypto Con?

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Visa Direct is dallying with USDC and EURC stablecoins, all in a bid to slash pre-funding needs and boost liquidity in cross-border payments. How delightfully modern! 💸

 

Visa has launched a pilot that uses stablecoins for near-instant cross-border payouts. The program was announced at the recent SIBOS conference in Frankfurt, and lets banks/ payment providers pre-fund transactions with 🕵️‍♂️Circle’s USDC and 🕵️‍♂️EURC.

Why Stablecoins Matter in Visa Direct’s Approach

The pilot focuses on improving liquidity for banks, remittance firms and other institutions. 🤯

This means that instead of locking up fiat funds in several payment corridors, participants can fund their Visa Direct accounts with stablecoins. A stroke of genius, if I do say so myself. 🎩

Breaking: Visa is testing pre-funded stablecoins to make cross-border settlement MUCH more working capital efficient 🤡

Most people will get this story wrong.

Here’s the problem Visa is solving and why I think its genius

– Simon Taylor (@sytaylor)

This model unlocks working capital, reduces exposure to exchange-rate swings and makes treasury flows more predictable. It also supports real-time transfers during weekends and holidays when legacy banking networks usually pause operations. 🕒

According to Visa, it has already processed over $225 million in stablecoin transactions. 📈 While this is small compared to its $16 trillion annual payment volume, it shows that stablecoins can be integrated at scale. The company plans to expand the pilot beyond its initial partners next year. 🚀

Circle Benefits as Visa Tests Stablecoin Payments

Circle Internet Group, the issuer of USDC and EURC, saw its stock rise about 3% after Bloomberg reported Visa’s pilot. 📈 The company’s stablecoins will power the new system on Visa Direct. 🕵️‍♂️

Mark Nelsen, Visa’s head of product for commercial and money movement solutions, pointed out how the pilot addresses a long-standing challenge. 🤔

Many institutions currently must keep pre-funded accounts in each market where they operate. Shortfalls can delay payments, especially over weekends when traditional settlement systems are offline. 🛑

We’re giving this immediate ability to get money to the accounts in real time,” Nelsen said. 🕒

He noted that freeing up capital helps institutions deploy resources more efficiently and avoid interruptions for end customers. 🎯

Competition in Real-Time Global Settlements Heats Up

Visa’s announcement came just a day after Swift announced its plan to collaborate with Consensys and more than 30 international financial institutions. Swift is developing a blockchain-based settlement platform designed to enable 24/7 cross-border transactions. 🔥

Interest in stablecoin-powered payment solutions has also been on the rise lately, among startups. Recently, RedotPay (a stablecoin payments firm) raised $47 million in a round led by Coinbase Ventures, which helped it achieve unicorn status. 🦄

Meanwhile, infrastructure startup Bastion recently secured $14.6 million from investors including Sony, Samsung Next, Andreessen Horowitz and Hashed. 🎉 These developments show the ongoing competition in building next-generation rails for cross-border finance. 🏗️

Outlook for Visa Direct Stablecoin Integration

Visa’s stablecoin pilot shows how traditional financial institutions can adopt digital assets to improve the current ways of doing things, rather than replace them. 🔄

By treating USDC and EURC as cash equivalents, Visa is attempting to reduce friction and cost in cross-border money movement. 💸

just found out VISA dropped a STABLECOIN that’s about to flip cross-border payments for good. instant, global money transfer with crypto speed? 🌍

the financial future is gonna be wild

– Domi Rosario (@DomiRosario_)

If the pilot proves successful, adoption by next year could affect how banks and remittance providers manage liquidity. 🧠 For now, only select partners meeting Visa’s internal standards can participate. The company has not yet shared details about the next phase of the rollout. 🤫

As more institutions test blockchain-based settlement solutions, the line between traditional and digital asset payments continues to blur. 🌀

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2025-10-01 04:10