- VISA is launching a new pilot program that lets businesses use stablecoins for pre-funding payouts.
- The initiative is available through Visa Direct and offers an alternative to traditional fiat pre-funding.
- Stablecoin balances will be treated as cash equivalents for payout purposes.
- The program will primarily serve banks, remittance providers, and financial institutions that need faster cross-border liquidity management.
- Visa plans to add more partners and expand the pilot in 2026.
Visa announced on Tuesday the start of a pre-funding pilot program that allows businesses to use stablecoins, a type of digital asset tied to a stable value like the U.S. dollar, instead of traditional currencies to cover outgoing payouts. The initiative is offered through Visa Direct and aims to make it easier and faster for companies to manage payments across borders.
According to the company, stablecoin balances will be handled as if they were cash deposited at a bank, allowing businesses to access funds for payouts quickly. Visa stated that this approach could help banks, money remitters, and other financial institutions that need more flexibility in global liquidity.
The firm emphasized that it is selecting pilot partners who meet specific eligibility requirements at launch. Visa intends to broaden the program by 2026. The announcement had a positive effect on the company’s stock price, which rose as much as 1.4% in pre-market trading.
Sentiment among investors remained strong following the news. Visa described the new pilot as a way to offer improved speed and efficiency for clients handling cross-border transactions, where delays and high costs are common issues with traditional pre-funding.
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