Visa to Pilot Stablecoin Payments to Revolutionize Cross-Border Transactions

Visa announced plans on Tuesday to test a novel system enabling businesses to use stablecoins for international payments, eliminating the need to pre-deposit cash in local accounts.

This development underscores the rising acceptance of digital tokens by major corporations following the United States' Genius Act, which provides regulatory clarity for stablecoin issuers. Mark Nelsen, Visa's product head for commercial and money movement solutions, acknowledged this as a game-changer in an interview with Reuters.

Visa is collaborating with undisclosed partners and intends on expanding the pilot next year, allowing financial institutions to pre-fund accounts using stablecoins instead of traditional currencies. This initiative aims to speed up cross-border transactions and free up cash resources typically locked in multiple currencies worldwide. While some fear stablecoins might disrupt market dynamics, Visa's move suggests a trend towards collaborative integration with existing financial systems.