EddieJayonCrypto

 30 Sep 25

tl;dr

Visa launches a pilot program using stablecoins USDC and EURC to revolutionize cross-border payments, modernizing legacy systems and enabling instant transactions while reducing currency risks.

**Visa Launches Pilot for Stablecoin-Powered Cross-Border Payments** *Visa Direct integrates USDC and EURC to modernize global payouts, signaling a shift toward blockchain-driven finance* In a bid to revolutionize cross-border payments, Visa has launched a pilot program enabling banks and financial institutions to pre-fund international transactions using stablecoins. The initiative, announced at SIBOS 2025, leverages Circle’s USDC (valued at $0.9993) and EURC (€1.07) as pre-funded assets, allowing near-instant payouts and streamlining treasury operations. **Modernizing Legacy Systems** Chris Newkirk, President of Commercial and Money Movement Solutions at Visa, emphasized the need to move beyond outdated cross-border infrastructure. “Cross-border payments have been stuck in outdated systems for far too long,” he said. The pilot aims to reduce the capital tied up in fiat currencies across multiple corridors, instead allowing participants to fund Visa Direct with stablecoins, which Visa treats as cash equivalents. This approach is designed to unlock working capital, mitigate currency volatility risks, and enhance predictability in treasury flows—particularly during off-hours or weekends when traditional systems are inactive. Visa has already settled over $225 million in stablecoin volume to date, though this remains a small fraction of its $16 trillion annual payment volume. **Stablecoins as a Liquidity Solution** The pilot targets banks, remittance services, and financial institutions seeking to optimize liquidity. By pre-funding with stablecoins, participants avoid the complexities of managing multiple fiat currencies. For example, a bank could use USDC to initiate payouts in USD or EURC for euro-based transactions, bypassing traditional currency conversion hurdles. Visa’s move comes amid broader industry efforts to adopt blockchain technology. Just a day after the pilot announcement, SWIFT revealed plans to collaborate with Ethereum developer Consensys and over 30 financial institutions to build a blockchain-based settlement platform for 24/7 real-time cross-border payments. **Growing Momentum for Crypto Payments** The shift toward stablecoins is gaining traction beyond Visa. Last week, stablecoin payments startup RedotPay achieved unicorn status after securing $47 million in a round led by Coinbase Ventures, with support from Galaxy Ventures and Vertex Ventures. Similarly, stablecoin infrastructure firm Bastion raised $14.6 million, backed by Coinbase Ventures, Sony, Samsung Next, and other major investors. These developments underscore the increasing role of stablecoins in reshaping global finance. As Visa and SWIFT push forward with blockchain-driven solutions, the industry appears poised for a transition toward faster, more transparent, and cost-effective cross-border transactions. Visa’s pilot is currently limited to partners meeting its internal criteria, with plans for a broader rollout in 2026. The initiative reflects a growing recognition of stablecoins as a critical tool for modernizing financial systems—and a clear signal that the future of cross-border payments is digital, decentralized, and instantaneous.

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