Recently, Visa launched a pilot for cross-border payments with stablecoins USDC and EURC via Visa Direct. The news is described in Visa’s corporate documentation on the stablecoin strategy and is supported by analyses on the remittance costs from the World Bank. The initiative involves financial institutions, banks, and remittance operators, aiming to reduce settlement times and trapped liquidity, while maintaining operations within existing channels.
According to the data collected by our editorial team during interviews and tests conducted with remittance operators between May and September 2025, mature on/off-ramp corridors have shown a reduction in settlement times typically from 24–72 hours to less than 30 minutes.
Industry analysts consulted highlight that, if the model were scaled, some corridors could experience significant reductions in FX spreads and overall fees compared to traditional channels.
Announcement: What’s in Visa’s pilot
Visa uses its near real-time payment infrastructure to route transfers between counterparties using pre-funded stablecoins. The tokens used are issued by Circle. In this context, no volumes, countries, or timelines for the extension of the test are indicated.
How it works: the operational flow in 6 steps
- On‑ramp: the sender funds the payment from a bank account or authorized wallet.
- Tokenization: conversion into USDC/EURC at an authorized custodian or issuer.
- Routing: Visa Direct forwards the payment order to the designated recipient.
- On-chain transfer: movement of USDC/EURC between whitelist wallets with ledger registration.
- Off‑ramp: conversion into local currency and crediting to the recipient’s account/wallet.
- Reconciliation: alignment between ledger and bank accounts; management of exceptions and errors.
The use of pre-funded stablecoins aims to eliminate pre-deposits on nostro/vostro accounts and to promote an almost instant settlement, compatible with existing banking systems. That said, operational safeguards remain necessary to ensure uniformity across different corridors.
Impact on Remittances and Cross-Border Payments
The pilot aims to shorten crediting times and reduce frictions related to time zones, cut-offs, and currencies. For operators and families, this means greater transparency on costs and faster availability of funds, especially where local on/off-ramps are already mature.
- Speed: from hours/days to minutes, where local on/off-ramps are available.
- Liquidity: less capital locked up awaiting settlement.
- Costs: potential reduction of fees and FX spread compared to traditional channels.
Numerical Example (illustrative scenario)
Sending 200 USD to a middle-income country: today the average cost can range between 5% and 7% with a timeframe of 1-3 days, according to public datasets on remittance fees from the World Bank. With USDC/EURC and enabled local infrastructures, the transfer can be completed in minutes, with total fees potentially below 1% depending on on/off-ramp and network fees. This is an editorial estimate based on known ranges; results vary by corridor and provider.
Technical Details, Partners, and Interoperability
Visa Direct operates as a layer of routing and messaging. The tokens USDC and EURC maintain their value pegged to USD and EUR, reducing exposure to volatile currencies during the transfer. The design provides compatibility with regulated bank accounts and wallets, allowing integration with already operational infrastructures. For technical insights and business use cases, see Visa’s official page on crypto and stablecoin solutions.
Visa has not disclosed the list of partners for the pilot nor the chains supported for on‑chain operations. There are also no details on custody (self‑custody vs custodial), transaction limits, and priority corridors, elements that will be crucial for scaling up. Reports and specialist articles following the announcement indicate the participation of some issuers and card issuance platforms, but the official list remains private at the time of publication.
Compliance: what changes and what remains to be defined
- KYC/AML: checks at on-ramp and off-ramp points; application of the Travel Rule where required.
- Screening: sanctions checks, risky wallets, and transaction monitoring.
- Custody: definition of responsibilities between issuer, custodian, and intermediaries in case of error or fraud.
- Reconciliation: procedures to align ledgers and banking systems, including the management of chargebacks or failed payments.
- Regulation: evolving framework (e.g., MiCA in the EU; US debate on stablecoins) to watch for licenses and limits. For example, the new alliance between Binance and BBVA marks a step in regulated custody.
Open Issues
- Schedule of the pilot and success criteria not communicated.
- Volumes and undeclared target corridors.
- Details on supported chains, fee, and non-public settlement SLA.
- Refund policies, error management, and unclear responsibilities along the chain.
FAQ
What is this pilot on stablecoins?
It is an experimental program in which banks, institutions, and remittance operators exchange pre-funded USDC/EURC to settle payments between countries with less locked capital. In fact, the intent is to test a more streamlined flow while maintaining control measures.
Are banks exiting the process?
No. They remain central for on‑ramp/off‑ramp, compliance, and custody. The pilot aims to simplify the processes and reduce time and costs without disintermediating the regulated players.
How fast is the settlement?
It depends on the network, partners, and checks. The goal is to move from hours/days to minutes in enabled corridors, while still complying with the required verifications.
Analysis: Why the Experiment is Relevant
The test challenges a hybrid model: existing network infrastructure plus settlement on stablecoin. If scalable, it could align the experience of international payments with that of domestic payments, impacting costs and transparency. However, technical and regulatory issues remain that will determine real adoption.