Visa Direct tests stablecoins as cash equivalent for instant transfers

Visa has launched a pilot program enabling banks and financial institutions to utilize stablecoins like USDC and EURC for real-time cross-border payouts. Announced at SIBOS 2025, this initiative aims to modernize treasury operations by allowing select partners to pre-fund payments with stablecoins, treated as cash equivalents. Visa's president for commercial and money movement solutions, Chris Newkirk, stated that outdated systems have hindered cross-border payments for too long, and this move is intended to enhance liquidity and reduce capital requirements. The pilot also aims to mitigate exposure to currency volatility and improve reliability in treasury flows, particularly during traditional off-hours. Although Visa has settled over $225 million in stablecoin volume, this amount is relatively small compared to its annual payments totalling $16 trillion. The pilot is currently restricted to select partners, with plans for broader implementation in 2026.

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