Stablecoins Target Cash Locked in Prefunding
Stablecoins let payment providers replenish cash outside banking hours, reducing prefunding costs.
In brief
Stablecoins let payment providers replenish cash outside banking hours, reducing prefunding costs. Payment providers using stablecoins can reduce prefunded cash by replenishing balances outside banking hours. Originally reported by Pymnts.
Prefunding Ties Up Cash
Payment providers need funds available in advance to make cross-border payouts.
Stablecoins Reduce Prefunding Costs
Stablecoins offer 24/7 funding to reduce cash committed until transactions settle.
Working Capital Index Decline
North American middle-market firms saw working capital index fall 6% to 51.6 in 2026.
Visa Direct Uses USDC
Visa Direct moved stablecoin prefunding from pilot to commercial production with USDC.
Lloyds Uses USDC Pilot
Lloyds settled $750,000 of payment obligations with Visa using USDC in a seven-day pilot.
Stablecoins Don't Eliminate Liquidity Needs
Providers still need liquidity for payouts, and stablecoins add their own costs and requirements.
The short version
Payment providers using stablecoins can reduce prefunded cash by replenishing balances outside banking hours.
