Visa’s Pilot Program for Stablecoin Payouts
Visa has initiated a pilot program in the United States, allowing select businesses to make payouts using stablecoins that are pegged to the US dollar, directly funded from fiat currency accounts. This announcement was made during the Web Summit in Lisbon, Portugal, where Visa unveiled its latest innovation in digital payments.
Utilizing Visa Direct for Rapid Transactions
Utilizing its Visa Direct network, the new service enables businesses to transfer stablecoins like USDC directly into recipients’ cryptocurrency wallets.
According to Chris Newkirk, Visa’s president of money movement solutions, the goal of this initiative is to facilitate rapid and universal access to funds, potentially allowing users to receive payments in mere minutes rather than days.
This pilot is particularly tailored for companies engaged in international operations and those within the gig economy, where swift digital transactions are crucial. Recent research by Visa indicated that 57% of gig workers prefer digital payment options, underscoring the demand for faster payment mechanisms.
Collaboration and Future Plans
Currently, Visa is in the process of collaborating with a select group of partners for this pilot, with broader access expected to occur by 2026. This latest endeavor aligns with Visa’s strategic push towards incorporating blockchain technology into its payment systems.
In recent months, Visa has taken significant steps to enhance its stablecoin offerings on its settlement platform, including the addition of Global Dollar, PayPal USD, and Euro Coin across the Stellar and Avalanche blockchains. Additionally, the company has been piloting instant transfers using USDC and EURC through Visa Direct, thereby streamlining treasury settlements for businesses.
Regulatory Developments and Industry Trends
Visa’s expansion comes in light of recent regulatory developments in the United States, particularly following the enactment of the GENIUS Act. This legislation has established federal guidelines for stablecoins, encouraging both regulatory clarity and corporate engagement in the sector.
Citigroup is currently exploring opportunities within stablecoin payments, while Western Union is set to introduce a digital asset settlement system based on the Solana blockchain. Meanwhile, major financial institutions such as JPMorgan and Bank of America are in the preliminary stages of developing their own stablecoin solutions. Furthermore, numerous startups within the stablecoin space are attracting substantial venture capital, highlighting the burgeoning interest and investment in the cryptocurrency ecosystem.
