Lloyds and Visa Speed Up Cross-Border Payments With Stablecoin Settlement

Lloyds Banking Group and Visa recently concluded a seven-day pilot that explored cross-border payment settlement using stablecoins, according to a press release issued on Sept. 30. During the pilot, Lloyds settled $750,000 in payment obligations with Visa using stablecoins, as stated in the release. The settlement was facilitated through Lloyds’ Corporate Markets branch in Jersey and subsequently transferred to Visa in the United States. The funds arrived at Visa within an hour, including during weekends, as reported in the release.

To evaluate the potential of stablecoin transactions to operate seamlessly across various blockchain networks, Lloyds utilized its own node on Canton, while Visa supported settlement on a separate public blockchain, as per the release. The pilot enabled the companies to assess the capacity of stablecoins to diminish the duration and intricacy associated with cross-border payments, stated Peter Left, head of digital assets at Lloyds Banking Group, in the release.

Left remarked, "We're seeing how digital money could help make international payments faster, more transparent and more flexible for businesses." He added that enhanced visibility and certainty over fund movement could revolutionize liquidity management, while interoperability between blockchain networks could unlock future applications of digital money at scale.

In a subsequent post on X, Rob Cameron, group country manager, UK & Ireland at Visa, said, "This pilot with Lloyds shows how stablecoins can work alongside existing banking infrastructure to give financial institutions more choice over how and when they settle funds." Cameron emphasized that Visa's role is to ensure these new forms of money become practical, interoperable, and trustworthy at scale.

Mark Nelsen, head of product for Visa Commercial Money Solutions, shared with PYMNTS CEO Karen Webster in an interview that although stablecoins currently represent a minuscule portion of global payment flows, they introduce a new payment method that can be highly appealing. Nelsen highlighted situations where stablecoins can be advantageous, including high currency volatility, limited access to banks and bank accounts, and urgent payment requirements.