Stablecoins are increasingly embedding themselves into traditional payment infrastructure. MVB Financial — a banking partner for fintechs — along with Velocity has joined the Visa Direct pilot, where stablecoins are used for funding and settlement in push-to-card payouts. Velocity announced this in a press release on Wednesday, September 9.
What exactly is being tested
Visa Direct is a system for instant card transfers. In this pilot, stablecoins act as the "fuel": funds enter the system as digital assets and exit onto the recipient's card. MVB, which serves fintechs and innovative companies, acts as the banking partner, while Velocity provides the technology platform.
The idea is simple: instead of routing money through multiple correspondent banks, participants use stablecoins for settlement. This is expected to speed up payouts and reduce costs.
Why this matters for users
If you've ever received a cross-border transfer, you know it can take days and cost a hefty fee. The Visa Direct stablecoin pilot is an attempt to make such transfers faster and cheaper. For those working with crypto, it's another step toward making digital assets easy to convert into fiat and spend anywhere.
This is especially true for USDT — the most popular stablecoin. Currently, most USDT transfers happen on the TRC-20 network (Tron) because fees are tiny — often under a dollar. On ERC-20 (Ethereum), fees can reach tens of dollars, but the network is more decentralized and supported by most wallets and exchanges.
TRC-20 vs ERC-20: which to choose
- TRC-20 — low fees (usually $0.1–$1), high speed (seconds), but less support in some services.
- ERC-20 — high fees ($5 to $50+ during peak hours), speed depends on network load, but maximum compatibility.
For everyday transfers and paying for foreign services, TRC-20 is often more cost-effective. But if you interact with DeFi protocols on Ethereum, you can't avoid ERC-20.
What's next
The Visa Direct pilot is a signal: traditional payment systems see stablecoins not as a threat, but as a tool. If the tests succeed, we could get faster and cheaper international payouts. And that means the line between crypto and regular money will blur even further.
For virtual card users, this is good news: the more infrastructure supports stablecoins, the easier it is to top up cards and pay for subscriptions without extra fees and delays.
Disclaimer: This material is for informational purposes only and does not constitute financial advice. Cryptocurrencies are subject to high volatility.
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