Visa partnered with onchain infrastructure provider Zerohash to integrate stablecoin funding and payout capabilities into Visa Direct. The collaboration will allow eligible business clients to prefund merchant accounts with stablecoins and send payouts directly in stablecoins. Zerohash will provide the technology and regulatory support needed to connect blockchain-based money with Visa's existing payments network. The integration aims to give businesses access to blockchain settlement for managing cross-border liquidity without requiring them to build their own custody, compliance and payment infrastructure. Visa Direct connects to more than 18 billion endpoints across over 195 countries and territories, including payment cards, bank accounts and digital wallets.
Visa Direct Integrates Stablecoin Funding and Payout Capabilities
Under the planned integration, Visa Direct clients will be able to prefund merchant accounts with stablecoins and send payouts directly in stablecoins. The service is intended to support round-the-clock transactions, particularly when companies need to move money across borders outside traditional banking hours. Recipients may gain faster access to funds by receiving stablecoins directly rather than waiting for transfers to pass through several banks and currency-conversion stages.
"Stablecoins are creating new opportunities to make money movement faster and more flexible, particularly for cross-border use cases," Visa Global Head of Product Mark Nelsen said in a statement. "Working with zerohash helps us bring stablecoin capabilities to our clients at scale, in a way that's reliable and interoperable with the financial systems they already rely on today."
Zerohash Provides Regulatory and Technical Infrastructure
Zerohash supplies embedded crypto and stablecoin infrastructure for financial companies, allowing clients to add blockchain services without operating the full technical and regulatory system themselves. The company was founded in 2017 and recently raised $104 million in a Series D-2 funding round led by Interactive Brokers at a $1 billion valuation.
In May, Zerohash became the first company licensed under the European Union's Markets in Crypto-Assets framework to also receive Electronic Money Institution status. The company has also applied to the U.S. Office of the Comptroller of the Currency for a national trust bank charter.
"Unlocking stablecoin use cases at the core network level further accelerates adoption globally," Zerohash CEO Edward Woodford said in a statement. "This partnership helps extend access to onchain money into Visa Direct. It gives businesses a faster way to prefund and manage liquidity across borders, and gives recipients quicker access to money and ultimately more choice."
Stablecoin Prefunding Addresses Cross-Border Liquidity Management
Businesses that send payments across several markets often keep money in multiple bank accounts to meet local settlement requirements. That approach can leave capital sitting idle and create delays when additional funds are needed outside banking hours. Stablecoin prefunding could allow companies to move liquidity between accounts more quickly while reducing their dependence on local banking schedules.
The model may be useful for payroll providers, marketplaces, remittance businesses and other platforms that need to make frequent payouts in several countries. The integration does not remove every operational issue. Companies will still need to manage stablecoin conversion, custody, compliance and the rules governing digital assets in each market.
The Visa Direct integration adds to the company's existing blockchain work, including its internal stablecoin platform and its participation in Open Standard, a group preparing to launch the OUSD stablecoin. Rather than asking businesses to choose between card and blockchain systems, Visa is connecting stablecoin settlement to payment channels that clients already use.
FAQ
What did Visa announce in its partnership with Zerohash?
Visa announced a partnership with Zerohash to integrate stablecoin funding and payout capabilities into Visa Direct. Eligible business clients will be able to prefund merchant accounts with stablecoins and send payouts directly in stablecoins. Zerohash will provide the technology and regulatory support needed to connect blockchain-based money with Visa's existing payments network.
How does stablecoin prefunding benefit businesses managing cross-border payments?
Stablecoin prefunding could allow companies to move liquidity between accounts more quickly while reducing their dependence on local banking schedules. Businesses that send payments across several markets often keep money in multiple bank accounts to meet local settlement requirements, which can leave capital sitting idle and create delays when additional funds are needed outside banking hours. The model may be useful for payroll providers, marketplaces, remittance businesses and other platforms that need to make frequent payouts in several countries.
What regulatory approvals has Zerohash received?
In May, Zerohash became the first company licensed under the European Union's Markets in Crypto-Assets framework to also receive Electronic Money Institution status. The company has also applied to the U.S. Office of the Comptroller of the Currency for a national trust bank charter. Zerohash was founded in 2017 and recently raised $104 million in a Series D-2 funding round led by Interactive Brokers at a $1 billion valuation.
