# Stablecoins Target Cash Locked in Prefunding

> Stablecoins let payment providers replenish cash outside banking hours, reducing prefunding costs.
- Title: Stablecoins Target Cash Locked in Prefunding · Pymnts
- Summary: Stablecoins let payment providers replenish cash outside banking hours, reducing prefunding costs. Payment providers using stablecoins can reduce prefunded…
- Keywords: stablecoins, prefunding, cross-border payments, working capital, visa direct, usdc, lloyds banking group, archax, business, finance, Target, Cash
- Source: Pymnts — https://pymnts.com/cryptocurrency/2026/stablecoins-take-aim-cash-locked-prefunding
- Author: PYMNTS
- Published: 2026-10-16T19:16:08+00:00
- Read time: 1 min
- Topics: stablecoins, prefunding, cross-border payments, working capital, visa direct, usdc, lloyds banking group, archax, business, finance
## 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.
## Key takeaway

Payment providers using stablecoins can reduce prefunded cash by replenishing balances outside banking hours.