Visa has rolled out a new pilot program that allows banks and financial institutions to use Circle’s USDC and EURC stablecoins for pre-funding cross-border transactions. The initiative, announced at SIBOS 2025, is designed to speed up settlements and reduce the need for institutions to lock up large amounts of capital.
Built on Visa Direct, the pilot gives participants the ability to deposit stablecoins, which Visa will recognize as liquid balances. This setup enables near-instant international payouts while still delivering funds in the recipient’s local currency.
A Shift in Liquidity Management
Traditional cross-border payments often require institutions to keep pre-funded accounts in different currencies. This approach ties up working capital and creates inefficiencies. With Visa’s new stablecoin model, banks can release that trapped capital and manage liquidity more effectively.
By treating USDC and EURC as usable balances, Visa is layering blockchain technology into its existing infrastructure instead of replacing current systems. This integration reduces settlement delays and allows transfers to complete in minutes rather than days. The pilot is currently open only to select partners, with plans to expand in 2026.
Opportunities and Challenges Ahead
Visa’s move reflects a growing trend toward blockchain adoption in payments. Stablecoins, tokenized assets, and central bank digital currencies (CBDCs) are all being tested as potential solutions for faster and cheaper global money movement.
Still, hurdles remain. Regulatory standards for stablecoins differ across regions, and compliance with AML and KYC requirements is critical. There are also risks tied to stablecoin issuers and the stability of their reserves.
This pilot highlights Visa’s strategy to evolve with the digital asset economy. By combining its trusted global network with the efficiency of blockchain, Visa aims to reshape how businesses and individuals handle international payouts, remittances, and treasury operations. If successful, the initiative could mark a turning point in modernizing cross-border finance.
