Visa tests pre-funding in stablecoin for cross-border payments

Visa is experimenting with stablecoin pre-funding on Visa Direct to make cross-border payments faster and more predictable. The pilot allows depositing funds in pegged tokens, accounted for by Visa as “money in the bank”: essentially, funds immediately available for global payouts.

Announced at SIBOS on September 30, 2025, and described by the specialized press, the initiative involves selected partners and aims to leverage Visa’s global infrastructure that connects over 11 billion eligible cards, accounts, and wallets.

Bloomberg has detailed the program and Visa’s official documentation explains the integration logic with the existing network Visa.

In a context where the average cost of retail remittances exceeds 6.2% of the amount sent (World Bank), the initiative aims to free up liquidity and simplify operational steps. Updated September 30, 2025.

What is pre-funding in stablecoin and why it matters

In the traditional model, companies maintain balances in fiat across multiple accounts and jurisdictions to ensure payments.

With the pilot, however, prefunding occurs in stablecoin which Visa treats as immediately available funds, reducing the need to lock up capital in multi-currency accounts.

This results in greater visibility on balances and, for treasury teams, a more robust control over cash flows.

How it works on Visa Direct: from the wallet to the beneficiary

The operational flow integrates into existing processes and is structured into a few key phases:

• Prefunding: the company transfers stablecoin to the operational account linked to Visa Direct.
• Availability: the funds are immediately usable for payouts.
• Conversion: at the time of issuance, the stablecoins are converted into local currency through authorized partners.
• Liquidation: beneficiaries receive in fiat to accounts, cards, or wallets compliant with local regulations.
• Reconciliation: the reporting provides complete traceability in line with corporate systems.

What changes for companies

• Less capital locked in multi-currency accounts, with more elastic liquidity.
• Reduction of interbank steps and manual reconciliations.
• Better predictability of fund availability times.

Impact on Liquidity and Operating Costs

Visa aims to accelerate access to liquidity and offer institutions greater flexibility in managing global payouts. Token pre-funding reduces the need to hold large reserves in fiat currency, facilitating:

• Timing: the availability of funds, which traditionally can take from hours to days, becomes almost instantaneous, except for the time needed for FX conversions and AML/CFT checks.
• Working capital: lower immobilizations on nostro/vostro accounts ensure greater resilience to volume fluctuations.
• Operations: streamlined processes help reduce back-office errors and costs.

Numbers in Comparison: Today vs. Model with Stablecoin

• Current retail remittances: global average cost of 6.2% of the amount sent (World Bank).
• Cross-border B2B payments: currently the times range between 1 and 3 business days (industry data varies based on corridor, cut-off, and checks).
• With pre-funding in stablecoin: the availability of funds is almost instantaneous, while still maintaining the time for FX conversion, on/off-ramp, and KYC and AML/CFT checks.

The effective metrics will depend on jurisdiction, supported stablecoins, conversion partners, and local regulatory limits.

Advantages and Risks: What to Watch Out For

Main Advantages

• Speed: reduction of latencies compared to traditional streams.
• Treasury management: more efficient use of working capital.
• Scalability: ability to standardize processes across multiple markets.

Risks and Open Issues

• Compliance: adherence to AML/CFT requirements, the Travel Rule, and sanctions controls.
• Stability: risk of de‑peg of stablecoins or liquidity issues on on/off‑ramps.
• Operational: potential cybersecurity incidents, network congestion, and partner vulnerabilities.
• Accounting: management of accounting and audit of token reserves.

Regulatory Framework: Where You Can Run and Where Caution Is Needed

The regulatory perimeter is evolving rapidly. Some useful references indicate that:

• EU – MiCA: the rules for e‑money tokens and asset‑referenced tokens have been discussed and approximately defined (EUR‑Lex), although full enforcement is expected following the phases of transposition and implementation. Mica Crypto Alliance: “Europe, clarity on regulations is needed”.
• Singapore – MAS: the regulatory framework for single‑currency stablecoins has been announced (MAS).
• USA: there is still no dedicated federal law; however, the NYDFS guidelines for regulated stablecoins in New York are operational (NYDFS).

The practical adoption will depend on the local licenses of the partners, the type of token, and the transparency of the reserves.

FAQ

Availability of the pilot

The program is in the experimental phase; its large-scale extension will depend on the test results and regulatory outcomes in different jurisdictions.

Supported Stablecoins

The choice of tokens varies based on the market and conversion partners, generally favoring stablecoins with verified reserves and broad banking support.

Impact on Existing Systems

The integration aims to reuse already known processes (KYC, screening, reconciliations), with the addition of connectors for wallets and local conversions.

Conclusion

Pre-funding in stablecoin on Visa Direct represents a significant paradigm shift: funds immediately available, reduction of operational frictions, and a more efficient use of capital.

It remains essential to maintain careful oversight on compliance, liquidity of on/off-ramps, and token stability, while the future trajectory will be defined by the results of the pilot and the maturation of the regulatory framework in key corridors.