Visa Launches Pilot Program to Test Stablecoin Use for Cross-Border Prefunding

Global payment system provider Visa has officially announced a pilot program to test the use of stablecoins as a prefunding instrument in cross-border transactions.
This initiative aims to accelerate international payments while reducing the need to hold fiat reserves across multiple jurisdictions.

Launch of the “Stablecoin Visa Direct” Pilot Program

In a statement released on September 30, 2025, Visa unveiled the launch of its stablecoin pilot program through the Visa Direct platform.
Under this scheme, financial institutions and corporations can utilize stablecoins as an alternative source of funding for cross-border transactions, allowing faster and more efficient settlement.

Through this new mechanism, businesses are able to prefund their accounts with stablecoins—instead of depositing fiat currencies well in advance.
Visa will treat these stablecoins as bank account balances, enabling them to be used immediately for international payment settlements.

According to Reuters and Bloomberg, Visa plans to test two major stablecoins pegged to the U.S. dollar and the euro—USDC and EURC—in collaboration with several undisclosed partners during the initial implementation phase.
This initiative is expected to reduce cross-border transaction friction, unlock trapped liquidity, and enhance the overall speed of global fund transfers.

Motivation Behind Visa’s Stablecoin Initiative

Several key factors are driving Visa to explore stablecoin adoption within its global payment network:

1. Improved regulatory clarity – The enactment of the GENIUS Act in the United States has provided a clearer legal framework for the issuance and use of stablecoins, paving the way for large institutions to adopt them. (Reuters)

2. Capital and liquidity efficiency – The stablecoin-based prefunding model allows companies to manage their working capital more dynamically without maintaining multiple fiat balances across jurisdictions.

3. Faster settlement times – Leveraging blockchain technology enables transactions to settle within seconds or minutes, significantly faster than traditional banking systems.

According to PaymentsJournal, this pilot represents a strategic first step by a major global payment network in integrating stablecoins into cross-border systems—while continuing to leverage its established conventional infrastructure.

Challenges and Key Considerations

Despite its promising potential, the program faces several technical and regulatory challenges that must be addressed:

• Cross-jurisdiction compliance – Stablecoin regulations vary by country, making policy coordination essential to ensure legal consistency and transactional security.

• Reserve asset security – Stablecoin issuers must guarantee the liquidity and credibility of their backing reserves to maintain price stability.

• Network interoperability – The stability of the system depends on the ability of stablecoins to operate across multiple blockchains and integrate seamlessly with traditional banking systems.

• Resistance from traditional finance – Legacy financial institutions may view stablecoins as a competitive threat, underscoring the importance of collaborative strategies to encourage broader adoption.

Next Steps and Global Outlook

Visa explained that the initial pilot phase will involve a limited group of partners. If successful, the company plans to expand the program globally in 2026.

According to FinTech Weekly, Visa views this initiative as a new foundation for global treasury operations, allowing corporations to streamline international capital flows with greater cost and time efficiency.

Should the pilot yield positive results, Visa’s move could pave the way for large-scale global stablecoin adoption, bridging the gap between traditional finance (TradFi) and digital asset innovation (Web3) marking a new era of blockchain-integrated global payment systems.