Visa Revolutionizes Cross-Border Payments with Stablecoin Prefunding
Visa has introduced a significant update to its cross-border payment system. Businesses can now prefund these transactions using stablecoins, a departure from traditional fiat currencies. This new feature, enabled through Visa Direct, promises faster settlement times and improved access to capital.
The shift comes as Visa launches a stablecoin prefunding pilot programme. This initiative, set to roll out in limited availability by April 2026, allows businesses to settle cross-border payments in minutes, a substantial improvement over the days typically required with fiat currencies.
The pilot is currently open to select partners, with Visa working behind the scenes to ensure these collaborators meet the necessary criteria. While specific names of these institutions remain unmentioned, Visa aims to expand participation in the programme by 2026.
Visa's move signals a significant step towards modernising cross-border payments. By embracing stablecoins, the company offers businesses quicker access to capital and reduces the need for advance parking of funds. This development aligns with broader industry trends, including SWIFT's recent announcement of a shared ledger based on blockchain technology.
