Visa & Lloyds Test Stablecoins for Cross-Border Settlement
Visa and Lloyds Banking Group have successfully completed a live pilot using stablecoins for cross-border settlement, involving USD $750,000 in payment obligations between the two groups.
The seven-day test aimed to examine whether stablecoin-based settlement could help financial institutions move funds more quickly outside conventional banking hours. The companies said the funds reached Visa in under an hour, including over a weekend.
Lloyds used USDC acquired through Archax, a UK-regulated digital asset exchange, to meet a series of US dollar settlement obligations. The volume was booked through Lloyds' Corporate Markets branch in Jersey before being transferred to Visa in the United States.
The pilot tested how stablecoins could sit alongside existing settlement arrangements rather than replace them outright. It also explored operational issues such as transfer timing, visibility of fund movements, and the practical steps involved in completing transactions.