5 big analyst AI moves: Apple lifted to Buy, AI chip bets reassessed
Investing.com -- Circle Internet stock rose 3% Tuesday morning following a Bloomberg report that Visa Inc. is testing a pilot program using Circle’s stablecoins for cross-border payments.
The pilot program will utilize Circle Internet Group Inc.’s USDC dollar and EURC euro-backed stablecoins on Visa Direct, the payment network’s real-time platform. This initiative aims to provide financial institutions, banks, and remittance providers with faster and more flexible international payment options without requiring them to tie up cash for extended periods.
According to Mark Nelsen, head of product for Visa’s commercial and money movement solutions, the program addresses a critical pain point for clients who currently must maintain pre-funded accounts in each market where they operate. This requirement can lead to service delays when accounts are underfunded, particularly during weekends when traditional payment systems aren’t running.
"We’re giving this immediate ability to get money to the accounts in real time," Nelsen explained. "It’s a more efficient use of capital so you can deploy it as needed as opposed to having to deploy two or three days worth of money in one stop."
The stablecoin-based system could potentially eliminate service interruptions for end customers by allowing more efficient capital deployment and real-time fund transfers, even when traditional banking systems are closed.