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Key Takeaways: Visa is initiating a Stablecoin Prevunding Pilot for account-based transactions using Visa Direct.
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What’s at stake?: Payment companies are eager to discover a viable use case for stablecoins following the passage of the Genius Act.
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Looking ahead: The pilot programs are expected to launch on a limited basis in April 2026.
Payment companies are rapidly trying to pinpoint effective use cases for stablecoins after the recent legislative changes.
Visa is rolling out Visa Direct, a real-time payment network that facilitates cross-border transactions. The Stablecoin Prevunding allows businesses to transfer funds to international accounts instantly, even during bank closures.
According to Mark Nelsen, Visa’s product director for Commercial and Money Movement Solutions, “This initiative demonstrates how Stablecoins and Technology can assist in modernizing payment systems.” He noted that the underlying payment network remains unchanged, functioning as usual.
Richard Crone, CEO of Crone Consulting, commented in American Banker, comparing Visa’s position to Switzerland’s neutrality in dealing with third-party tokens, emphasizing that Visa doesn’t issue its own Stablecoins.
“Visa does not create its own Stablecoins or co-branded versions,” Crone added. “This launch is primarily to support third-party tokens, but our approach will encompass any approved issuer.”
In 2024, Visa reported processing 10 billion transactions, spanning 11 billion endpoints, including 3.5 billion bank accounts, 4 billion cards, and another 3.5 billion wallets.
This Stablecoin Prevunding pilot enables businesses to avoid keeping large sums in foreign bank accounts, transferring funds directly to accounts abroad. For instance, a rideshare company could pay drivers from overseas over the weekend without having to leave funds tied up in a bank.
This process brings its own complications, as noted by Nelsen. “If it’s a busy weekend and funds are running low, it can be tricky to top up your account with a bank closed on Saturdays. Moving money to a bank often means waiting until Monday.”
The aim of Visa’s pilot is to streamline this process, ensuring immediate fund availability. Nelsen explained, “If a client decides to top up their account, they can simply send Stablecoins, adjust the account balance, and continue paying drivers.”
Businesses will have the option to convert their funds into stablecoins over the weekend. Nelsen specified that Visa will target stablecoins that meet certain criteria, including having a significant volume.
The pilot initially targets large-scale remittance solutions, but Visa sees potential applications for stablecoins in various other areas.
B2B accounts present another significant opportunity for stablecoin payments, highlighted by Crone. “Visa Direct excels in reach and speed, yet it isn’t designed for invoice adjustments or approval workflows. This space holds vast potential.” These scenarios often necessitate integration with enterprise systems, including e-invoices and accounts payable.
Crone Consulting estimates the B2B market could be worth between $120 trillion and $140 trillion globally, encompassing a cross-border segment valued between $120 trillion and $40 trillion.
Despite these opportunities, regulatory clarity remains a hurdle for implementing stablecoin payments across Visa’s 11 billion endpoints, according to Nelsen.
