Visa Launches Stablecoin Pilot for Cross-Border Payments

The Visa Direct stablecoin pilot marks a strategic move to modernize treasury operations by leveraging blockchain technology for cross-border settlements. By allowing banks and financial institutions to use Circle’s USDC and EURC as pre-funded assets, Visa is creating a bridge between traditional financial infrastructure and emerging digital currency systems. This approach enables near-instant payouts while maintaining the stability and regulatory compliance associated with established stablecoins, positioning the pilot as a practical solution for institutions seeking to upgrade their international payment capabilities without taking on excessive volatility risk.

The timing of this announcement at SIBOS 2025, a premier financial services conference, underscores Visa’s commitment to positioning itself at the forefront of payment innovation. By targeting the specific pain points of cross-border treasury operations—including settlement delays, high costs, and operational complexity—Visa is addressing a market segment that has historically been resistant to technological disruption. The use of pre-funded stablecoin accounts represents a hybrid approach that maintains familiar treasury management practices while introducing the efficiency benefits of blockchain settlement.

At the core of the pilot program is Visa’s Direct payment infrastructure, which has been adapted to integrate stablecoin settlements. This integration allows participating financial institutions to hold USDC and EURC balances that can be converted and disbursed through Visa’s existing network, enabling near-instant cross-border payouts to recipients in supported jurisdictions. The use of Circle’s regulated stablecoins provides the necessary stability for treasury operations while leveraging the efficiency of blockchain-based transfers that can settle in seconds rather than days.

The selection of both USDC and EURC demonstrates Visa’s strategic approach to addressing multiple currency corridors simultaneously. USDC, being dollar-denominated, serves the vast majority of global trade settlements, while EURC provides direct access to Eurozone markets without the need for multiple currency conversions. This dual-stablecoin approach reflects the reality of global treasury operations, where companies routinely manage multiple currency exposures and require flexible solutions that can adapt to different market needs.

By building on existing Visa Direct infrastructure, the pilot minimizes implementation barriers for financial institutions that are already familiar with Visa’s payment systems. This approach allows participants to leverage their existing relationships and technical integrations while gradually introducing stablecoin functionality, creating a smoother adoption path than would be possible with a completely new system.

Chris Newkirk, president of commercial and money movement solutions at Visa, framed the initiative as a necessary evolution for an industry that has lagged in technological adoption. “Cross-border payments have been stuck in outdated systems for far too long,” Newkirk stated, highlighting the persistent inefficiencies that have characterized international money movement. This sentiment reflects a broader industry recognition that traditional correspondent banking networks, with their multi-day settlement times and opaque fee structures, are increasingly inadequate for modern business needs.

The pilot represents a significant validation of stablecoin technology by one of the world’s largest payment networks, potentially accelerating mainstream adoption across the financial services industry. For Circle, the selection of USDC and EURC as the designated stablecoins reinforces their position as institutional-grade digital assets with the regulatory compliance and technical reliability required for large-scale financial applications. This partnership between traditional finance (tradfi) and cryptocurrency infrastructure demonstrates how established financial institutions can leverage digital assets without compromising on security or compliance standards.

Looking forward, the success of this pilot could pave the way for broader stablecoin integration across Visa’s global payment network, potentially extending beyond cross-border B2B payments to include consumer remittances, e-commerce settlements, and other use cases where speed and cost efficiency are critical. As financial institutions increasingly seek to modernize their operations while managing risk, Visa’s measured approach of starting with a controlled pilot for select partners provides a template for how traditional finance can responsibly integrate blockchain technology.