Visa is testing a new system allowing businesses to use stablecoins for cross-border payments via Visa Direct. This move highlights the growing interest in digital tokens among major financial players. The GENIUS Act in the US boosted confidence by setting clear rules for stablecoin issuers. Visa plans to expand the program in 2026, targeting banks and financial institutions needing to hold funds in multiple currencies. Stablecoins offer faster transactions and less tied-up capital globally.

Visa’s pilot partners remain undisclosed, but the company aims to expand the program in 2026. The initiative targets banks, remittance firms, and financial institutions needing to hold funds in multiple currencies. Stablecoins offer faster transactions and less capital tied up in dormant accounts around the world. Visa’s approach signals integration of stablecoin rails into existing infrastructure.

Visa’s head of crypto expects traditional payments and digital assets to converge, with the stablecoin market estimated at $269b. Visa has processed over $200m in stablecoin settlement volume, positioning itself as a competitor and bridge between banks, fintech firms, and blockchain networks. The company has expanded settlement capabilities and struck partnerships with banks and fintech firms for token issuance.

In 2024, Visa introduced the Visa Tokenized Asset Platform, allowing institutions to issue and manage tokens on blockchains. BBVA plans to launch a stablecoin through the platform. Visa’s strategy positions it as a competitor to stablecoins and a connector between banks, fintech firms, and blockchain networks.

Read more at Yahoo Finance: Credit Card Giant Visa Pilots Stablecoin Payments To Simplify Global Transfers