TL;DR
- Visa pilot: Banks can pre-fund cross-border payments with stablecoins, USDC and EURC, unlocking liquidity and reducing volatility exposure.
- Industry rivalry: Swift launched a blockchain settlement project with Consensys and 30+ institutions, intensifying competition.
- Investor momentum: RedotPay and Bastion raised millions, reflecting strong venture capital interest in stablecoin innovation.
Visa has unveiled a pilot program that allows banks and financial institutions to pre-fund cross-border payments using stablecoins, marking a significant step in modernizing global money movement. Announced at SIBOS 2025, the initiative leverages Circle’s USDC and EURC to enable near-instant payouts, with Visa treating these digital assets as cash equivalents. The move reflects growing momentum in the payments industry to replace outdated systems with blockchain-based solutions that offer speed, liquidity, and predictability.
Visa Pilot Targets Liquidity Optimization
The pilot is designed for banks, remittance providers, and financial institutions seeking to streamline liquidity management. Traditionally, cross-border transactions require capital to be parked in multiple corridors, tying up resources and exposing firms to currency volatility. By pre-funding with stablecoins, participants can unlock working capital and reduce reliance on fiat reserves.
Visa has already processed over $225 million in stablecoin volume, though this remains a fraction of its $16 trillion annual payments. The company aims for a broader rollout in 2026, pending successful trials with select partners.
Stablecoins as Cash Equivalents
Visa’s decision to treat stablecoins as cash equivalents underscores their growing role in global finance. With a market capitalization exceeding $307 billion, stablecoins are increasingly viewed as reliable instruments for settlement. The pilot highlights their utility during off-hours and weekends when traditional banking systems are inactive. Chris Newkirk, Visa’s president of commercial and money movement solutions, emphasized that the integration lays the groundwork for money to move instantly worldwide, giving businesses more choice in how they pay.
Industry Competition Intensifies
Visa’s announcement came just one day after Swift revealed its collaboration with Consensys and more than 30 financial institutions to build a blockchain-based settlement platform. The initiative aims to enable 24/7 real-time cross-border payments, intensifying competition among global payment networks. Both Visa and Swift are positioning themselves to capture demand for faster, more efficient settlement systems as businesses increasingly expect instant, borderless transactions.
Growing Investor Interest in Stablecoin Startups
The broader stablecoin ecosystem is also attracting significant investment. Payments startup RedotPay recently achieved unicorn status after raising $47 million in a round led by Coinbase Ventures, with backing from Galaxy Ventures and Vertex Ventures. Meanwhile, infrastructure startup Bastion secured $14.6 million from investors including Sony, Samsung Next, Andreessen Horowitz, and Hashed. These developments highlight stablecoins’ expanding role in reshaping traditional finance and emerging fintech sectors.
