Visa has announced that it is initiating a test program allowing companies to fund cross-border payments by using stablecoins instead of pre-depositing cash into local bank accounts. The move marks an important inflection point in how global payments can be settled.
The company says it is collaborating with select, unnamed partners and plans to gradually expand the pilot in 2026.
Traditionally, companies had to pre-fund multiple local currency accounts around the world so that they could ensure sufficient cash for payouts—a practice that ties up capital and reduces flexibility. By contrast, using stablecoins means that funds do not have to be locked up in advance, freeing up liquidity for other uses.
Stablecoins settle on blockchain or similar ledgers, often in minutes or faster, whereas conventional cross-border transfers can take days. This can reduce delays, counterparty risk, and foreign exchange complications.
Rather than displacing existing payment rails, Visa is aiming to incorporate stablecoin funding as an additional layer or option within its current network. As Mark Nelsen, head of product for Visa’s commercial and money movement solutions, put it:
“Stablecoins are moving from crypto gimmick to financial plumbing … incorporate stablecoin technology into existing flows.”
Visa’s move is closely linked to the recent enactment of the GENIUS Act, a U.S. federal law that establishes a regulatory framework for payment stablecoins.
According to Nelsen,
“The Genius Act changed everything. It made everything so much more legitimate. Before that regulatory clarity, all the big institutions were sort of on the fence.”
The GENIUS Act mandates that stablecoin issuers maintain 100% reserves in liquid assets (like U.S. dollars or Treasuries), publish monthly disclosures of reserve composition, and prohibits misleading marketing about government backing.
This legal clarity gives large institutions the confidence that stablecoins can be held, transferred, and regulated under well-defined rules.
Under the pilot, participating banks, remittance operators, and financial firms will pre-fund the Visa Direct system with stablecoins rather than fiat currencies. Visa treats those stablecoins as “money in the bank,” making them available for distribution.
Recipients will still receive their local fiat currency. The stablecoins are converted or settled behind the scenes to ensure local currency receipt.
The pilot is reportedly testing Circle’s USDC and EURC as funding tokens.
Some analysts caution that stablecoins could threaten regional banks or payment firms by bypassing their role, but Visa’s strategy suggests collaboration rather than outright competition.
While the GENIUS Act encourages institutional adoption in the U.S., critics caution about global monetary implications. For example, Amundi – Europe’s largest asset manager – warned the U.S. stablecoin policy might destabilize global payment systems and spur “dollarization.”
Meanwhile, SWIFT is reportedly exploring launching its own blockchain to stay relevant in an evolving landscape.
In Europe, nine major banks are forming a consortium to launch a euro-denominated stablecoin as early as late 2026.
Elsewhere, China has introduced an offshore yuan-pegged stablecoin in Kazakhstan to enhance cross-border trade.
Volatility / reserve risks: Even with mandated reserves, stablecoins must maintain full backing and transparency to prevent depegging or loss of trust.
Regulation across jurisdictions: Visa’s pilot is U.S.-centric; cross-border stablecoin use still needs harmonized regulation globally.
Counterparty & technological risk: Blockchain settlement, smart contracts, and interoperability issues all carry operational risk.
Monetary sovereignty concerns: Widespread use of dollar-pegged stablecoins could reduce central banks’ control over domestic monetary policy.
Visa’s stablecoin pilot could represent a pivotal moment in the convergence of traditional financial networks and blockchain-backed digital assets. Enabled by the regulatory clarity of the GENIUS Act, the initiative seeks to make cross-border payments faster, more efficient, and capital-light. But success hinges on global regulatory alignment, operational resilience, and market trust. As stablecoins inch from “crypto novelty” to core infrastructure, incumbents like Visa appear poised to ride the wave rather than be swept aside.