Yesterday, at the Sibos 2025 conference in Frankfurt, Germany, Visa announced it would launch a stablecoin prefunding pilot through Visa Direct, its real-time digital payments network.

The pilot will enable businesses to pre-fund Visa Direct with stablecoins instead of fiat currency; the stablecoin will be treated as “money in the bank,” enabling Visa to release funds immediately. This is expected to reduce friction in payments and give banks and financial institutions more flexibility in managing payments and working capital.

The announcement forms part of a growing trend of stablecoins entering the mainstream payments sphere, in large part enabled by the US’s recent GENIUS Act regulating stablecoins. Through the project, institutions will be able to use stablecoins to facilitate payments, but recipients will still get money in their local currency.

Stablecoins, digital tokens usually linked to a currency or commodity and designed to keep a stable price, can be moved much more quickly than traditional currency. They also provide a consistent settlement layer, reducing exposure to currency volatility. However, regulatory uncertainty and historically high transaction costs have made them difficult to incorporate into mainstream payments until recently. 

“Cross-border payments have been stuck in outdated systems for far too long. Visa Direct’s new stablecoins integration lays the groundwork for money to move instantly across the world, giving businesses more choice in how they pay,” said Chris Newkirk, President, Commercial & Money Movement Solutions at Visa. 

Visa is currently working with unnamed partners on the pilot; the project is expected to move into limited availability by April next year.