Visa is spearheading a significant shift in global finance with a pilot program utilizing stablecoins for cross-border payments. This initiative, integrated with Visa Direct, aims to streamline international transactions by enabling businesses to fund payments with stablecoins, thereby reducing the need for pre-deposited local currency and unlocking liquidity. The pilot program was announced at SIBOS 2025 and is currently available to select financial institutions, with plans for expansion in 2026.
This move is significantly bolstered by the recent passage of the GENIUS Act in the United States, which establishes a federal regulatory framework for stablecoins. Signed into law on July 18, 2025, the GENIUS Act defines 'payment stablecoin' and mandates that issuers hold reserves equivalent to the value of issued stablecoins, restricted to U.S. dollars, Treasury bills, and other government-backed assets. The legislation also imposes crucial compliance requirements, including anti-money laundering programs, and prohibits paying interest to stablecoin holders.
Industry figures note that this regulatory clarity has made the landscape "so much more legitimate" for major institutions previously hesitant to engage with digital assets. Visa's pilot program has already processed over $200 million in cumulative stablecoin settlement volume, demonstrating tangible demand and operational success for this emerging payment method. The program allows financial institutions, remittance firms, and other businesses to pre-fund accounts with stablecoins, a move that can expedite cross-border transactions and free up capital that would otherwise be tied up in multiple currencies.
The implications of the GENIUS Act extend beyond Visa's immediate pilot, aiming to foster innovation while mitigating risks and focusing on consumer protection and financial stability. This framework is designed to ensure that stablecoins operate within a regulated environment, promoting trust and security in digital asset transactions.
This development signifies a pivotal moment in the evolution of international finance. By embracing stablecoins, Visa is modernizing its payment rails and contributing to a future where cross-border commerce is more efficient, accessible, and integrated with digital asset technology. The successful implementation of such programs, supported by clear regulatory guidance, paves the way for broader institutional adoption and a more interconnected global financial ecosystem.