KEY FACTS: Visa has launched a U.S. pilot program enabling businesses to send payouts from fiat dollar accounts directly to recipients’ crypto wallets as USDC stablecoins, leveraging Visa Direct for near-instant settlement; announced at Web Summit in Lisbon, the initiative capitalizes on the newly passed GENIUS Act, which provides the first federal framework for stablecoin regulation, and targets high-speed needs in international payments, gig work, and the creator economy. Building on prior expansions, including support for USDG, PYUSD, and EURC on Stellar and Avalanche blockchains, plus a September treasury pilot—the program is set for full rollout in 2026, positioning Visa as a leader in bridging traditional finance with blockchain while addressing global demand for faster, borderless money movement.

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Source: Visa

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Visa Pioneers Fiat-Funded Stablecoin Payouts for US Businesses

Visa has unveiled a pilot program in the United States designed to bridge the gap between traditional fiat currencies and the world of stablecoins. Announced at the prestigious Web Summit here in Lisbon on Wednesday, the initiative allows businesses to dispatch payouts directly from dollar-funded accounts to recipients' crypto wallets, all while leveraging Visa's robust digital payments infrastructure. This development emphasizes Visa's deepening embrace of blockchain technology. The feature is unveiled at a time that U.S. regulators are solidifying frameworks for digital assets, creating room for innovation in cross-border remittances and gig economy transactions.

The pilot represents a seamless fusion of old and new financial paradigms. Businesses operating within the U.S. can now initiate payouts using everyday fiat currency, such as standard U.S. dollars sitting in corporate bank accounts, and they have those funds converted and delivered as stablecoins, such as the popular USDC, straight to an employee's, freelancer's, or vendor's digital wallet. Recipients, in turn, have the flexibility to opt for stablecoin delivery, ensuring rapid access to funds without the friction of traditional banking delays. Powered by Visa Direct, the company's established network for real-time money transfers, this system promises to slash settlement times from days to mere minutes, a boon for industries reliant on swift, borderless payments.

Visa's expansion into stablecoins comes hot on the heels of the GENIUS Act, a transformative piece of U.S. legislation that establishes the nation's first comprehensive federal guidelines for stablecoins. Passed earlier this year, the act provides much-needed clarity on issuance, reserves, and oversight, dispelling long-standing uncertainties that have hamstrung adoption. With this regulatory green light, major players in the payments sector are racing to integrate stablecoins into their ecosystems, viewing them not as speculative novelties but as reliable tools for efficient value transfer. Visa's pilot is a prime example of this shift, positioning the payments giant as a frontrunner in a market that's already ballooned to over $300 billion in total value this year alone.

Chris Newkirk, Visa's president of money movement solutions, during a keynote session at the Web Summit, remarked that the development is toward democratizing access to global finance. He added that launching stablecoin payouts is to enable universal access to money in minutes, for anyone, anywhere in the world. His words captured the enthusiasm rippling through the audience of tech innovators, entrepreneurs, and policymakers, many of whom see stablecoins as the key to unlocking frictionless economic activity in an increasingly digital-first economy.

Delving deeper into the mechanics, the pilot leverages Visa Direct's proven capabilities for push payments, which already facilitate billions in transfers annually. In practice, a U.S.-based company might use its fiat balances to fund a payout to a remote freelancer in Southeast Asia. Through the platform, those dollars are instantly bridged to USDC and dispatched to the recipient's compatible wallet on networks like Ethereum or Solana. This fiat-to-stablecoin conversion happens behind the scenes, ensuring compliance with both traditional banking rails and blockchain standards. For now, the focus is on USDC, but Visa has signaled intentions to expand compatibility with other stable assets as the program matures.

The initial rollout is targeted and strategic, zeroing in on sectors where speed is paramount. International businesses grappling with volatile exchange rates and sluggish wire transfers stand to benefit immensely, as do participants in the freelance and gig economy, such as app-based drivers, content creators, and remote consultants. Visa's own research, cited in the announcement, reveals that a staggering 57% of gig workers prioritize digital payment methods precisely because they offer quicker access to earnings. In an era where the global gig workforce numbers in the hundreds of millions, this preference isn't just a statistic; it's a clarion call for innovation. The creator economy, too, emerges as an early adopter, with influencers and digital artists already experimenting with crypto wallets for instant royalties and sponsorship disbursements.

This pilot is the latest chapter in Visa's multifaceted foray into blockchain territory. Just this past July, the company broadened its stablecoin settlement platform by integrating three new tokens: Global Dollar (USDG), PayPal's PYUSD, and the euro-denominated Euro Coin (EURC). These additions were rolled out across the Stellar and Avalanche blockchains, enhancing interoperability and reducing costs for enterprise users. Fast-forward to September, and Visa Direct kicked off another pilot for instantaneous transfers using USDC and EURC, specifically tailored for treasury operations between trading partners. These efforts collectively paint a picture of a company that's not dipping a toe but diving headlong into decentralized finance, all while maintaining the security and scalability that define its legacy brand.

As Visa onboards a select cadre of partners for the initial phase, whispers of broader accessibility abound. Company executives have penciled in a full-scale rollout for 2026, pending successful testing and regulatory fine-tuning. This measured approach allows for iterative improvements, such as enhanced fraud detection and multi-currency support, ensuring the system scales without compromising on reliability. For recipients, the endgame is empowerment: a world where a payout from New York lands in a wallet in Nairobi faster than a coffee break, complete with options to convert back to local fiat if desired.

Zooming out, Visa's ambitions are part of a larger seismic shift in the payments landscape. Stablecoins, once the domain of crypto enthusiasts, are now courting the suits on Wall Street and in boardrooms worldwide. Banking behemoth Citigroup is actively exploring stablecoin-based payment rails for its institutional clients, aiming to streamline high-volume cross-border flows. Remittance titan Western Union, long a staple for migrant workers sending money home, is gearing up to debut a Solana-powered digital asset settlement system that could disrupt its own legacy model. Even the staid giants of finance, such as JPMorgan and Bank of America, are dipping into the stablecoin pool, with early-stage projects focused on tokenized deposits and programmable money.

This corporate influx is fueled by cold, hard capital. Venture funding for stablecoin innovators is surging, with recent multimillion-dollar rounds propelling startups like Telcoin (a blockchain remittance platform), Hercle (focused on compliant token infrastructure), and Arx Research (building analytics for digital assets). These investments signal investor confidence in stablecoins' staying power, especially as they address pain points like inflation in emerging markets and the inefficiencies of legacy SWIFT transfers.

Information Sources:

• Visa Blog
• Visa Website
• Yahoo Finance
• Cointelegraph

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