Visa Tests Stablecoin Settlement for Cross-Border Payments
Visa is collaborating with Singapore's Monetary Authority to test the use of stablecoins for 24/7 cross-border payments. The pilot project, part of the BLOOM initiative, aims to connect traditional payment systems with stablecoin rails and enable settlement on weekends and public holidays.
The project uses dollar- and euro-backed stablecoins and targets settlement infrastructure between institutions. Visa's trial is designed to prove that regulated stablecoins can close gaps left by traditional banking hours.
According to Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research, 'Stablecoins move and settle 24/7, but the banking and payments infrastructure around them often don't.' The pilot project is seen as a step toward greater interoperability between traditional and stablecoin-based systems.