Visa Moves Stablecoin Prefunding to Commercial Use
Visa is adapting its stablecoin prefunding capabilities for commercial use, aiming to streamline cross-border payments and reduce settlement times.
Payments giant Visa is now utilizing its stablecoin prefunding technology for commercial applications. This move is intended to improve the efficiency and speed of cross-border transactions compared to traditional banking systems.
The technology enables businesses to transfer funds using stablecoins, such as USD Coin (USDC), over blockchain networks. Visa is leveraging partners like Anchorage Digital to build out this infrastructure. Businesses are expected to benefit from faster transaction settlements and potentially lower fees.
This new capability is currently in a pilot phase as Visa gathers insights from its use. The company anticipates that stablecoin utilization could transform international trade payments, offering a more agile and reliable alternative to current systems like SWIFT.
Visa has previously explored stablecoin technology with payment service providers. Expanding this to direct commercial use represents a logical progression in the company's digital currency strategy.