Visa and Lloyds complete live trials of stablecoin settlement
Visa and Lloyds Banking Group have completed a live pilot exploring how stablecoin-based settlement could support faster, more transparent and flexible cross-border transactions.
The pilot focused on the behind-the-scenes process through which financial institutions exchange funds to complete and reconcile payment activity. Through a series of real-world transactions, Lloyds and Visa tested how stablecoins could be used alongside existing settlement processes, assessing their impact on speed, transparency and operational processes.
The seven-day pilot involved a series of US dollar settlement obligations totalling US$750,000. To complete these settlements, Lloyds used USDC purchased through Archax, a UK-regulated digital asset exchange. The settlement volume, booked through Lloyds’ Corporate Markets branch in Jersey, was then transferred to Visa in the US.
The pilot demonstrated how blockchain-based settlement can improve speed and flexibility, with funds reaching Visa in under an hour, including during the weekend. Under traditional cross-border payment processes, settlement can take a day or more if initiated outside of banking hours.
Peter Left, head of digital assets at Lloyds Banking Group, says: “Stablecoins could be particularly valuable for cross-border payments, where moving money between markets, currencies and infrastructures can add time and complexity. Settling $750,000 of live payment obligations between Lloyds and Visa using stablecoins has allowed us to move beyond theory and test these capabilities in a real-world setting.”
The pilot also demonstrated the potential for stablecoin transactions to operate across a variety of blockchain networks. As part of the test, Lloyds used its own node on Canton, while Visa supported settlement on a separate public blockchain, demonstrating interoperability across both networks.
Says left: “We’re seeing how digital money could help make international payments faster, more transparent and more flexible for businesses. Greater visibility and certainty over the movement of funds can transform liquidity management, while interoperability between blockchain networks helps unlock future applications of digital money at scale.”
