For small companies engaged in international trade, transaction speed often produces a difference in smooth operation and cash flows. VISA has taken a remarkable step to improve this aspect with the introduction of the new Stablecoin Prefunding Pilot through Visa Direct. The initiative, published in SIBOS 2025, aims to revolutionize the border payment and improve the efficiency and flexibility of all businesses of all scale.
Chris Newkirk, president of VISA’s commercial and money exercise solutions, emphasized the urgency of this upgrade. «The border payment has been trapped for too long in an old system,» he said. This new pilot not only promises faster transactions, but is particularly advantageous for small businesses that explore the complexity of international payment by unlocking liquidity.
The introduction of stablecoin prefunding directly solves the long -term problem of inter -border payment, including high cost and delay. For decades, companies had to “park” a large amount of capital with traditional currency currencies before paying, or connect resources that can be used for growth.
Main advantage
- Unlock liquidityBy allowing a company to protect Stablecoins and visa directly, the company can avoid the burdensome practices of maintaining a real fiat balance in advance. This change allows you to efficiently manage your payments while activating capital.
- Operation of the Ministry of Modern TreasuryThis accelerated system allows companies to solve their payments in a few minutes more than the waiting day. This acceleration enables reactive liquidity management more than an important factor in today’s rapidly progressing market.
- Volatility: Stablecoins provides a stable settlement layer to minimize exposure to fluctuations found in local currencies. This aspect is especially associated with small businesses that do not have financial bands to hedge for risks of money.
Actual application
The pilot system will mainly accept banks, remittances and financial institutions. But the owner of small businesses can benefit indirectly. Simplified processes often lead to fast and potentially low fees, which lead to the cost savings of business owners who have to pay over the border.
When performing international businesses, small companies often deal with various calls and handle their own obstacles. The predictability provided by the Stablecoin transaction can help reduce the complexity related to the currency conversion fee and the waiting period before the funds can be used.
Payments can be delivered in advance from Stablecoins, but the recipient will still be paid by local currency. This maintains the traditional structure of international transactions while improving backend efficiency.
Potential challenge
The prospect of using Stablecoin for pre -funding provides a number of advantages, but small business owners should pay attention. The pilot is currently limited to some partners, and not all businesses are not immediately qualified for these benefits. Expectations should be managed as a visa plan to expand initiatives over the next few years.
In addition, the stable coin aims to provide stability, but the acceptance and regulatory environment may vary greatly depending on the jurisdiction. Small business owners may have to update local regulations on cryptocurrency transactions to avoid potential legal traps.
The digital environment is rapidly developing, and diligence is required to meet these changes and assistance. Small business owners can benefit from thorough studies and perhaps the benefits of financial torture, which is accustomed to adopting Stablecoin in the payment process.
VISA’s initiatives have been set up for small businesses to manage international payments so that they can borrow the necessary agility in the global competitive market. For more information about VISA’s new Stablecoin pilot, you can find it in the official press release. here.
As financial technology continues to develop, it is better to maintain and prepare information about these changes.
Image through ENVATO
