Visa joins Singapore project to pilot stablecoin settlement

Visa has joined a Monetary Authority of Singapore (MAS)-led initiative to test stablecoin settlement with B2B payments provider Nium. The project, called Bloom, seeks to connect traditional payments and stablecoin networks so that financial institutions can settle transactions 24 hours a day, including weekends and holidays.

The Bloom initiative

Bloom is an acronym for Borderless, Liquid, Open, Online, Multi-currency. The programme is focused on how banks can benefit from faster, more programmable forms of payment without sacrificing the safeguards that underpin trust in the financial system. MAS is leading the effort, and Visa is contributing its expertise in payment infrastructure.

Pilot details

Under the pilot, Visa and Nium will use regulated stablecoins that are backed by major currencies, such as the US dollar and the euro. The goal is to allow settlement seven days a week, rather than only on business days. Visa says this will reduce delays, improve efficiency, and give participating banks quicker access to funds.

Statements from Visa

Adeline Kim, group country manager for regional Southeast Asia and SVP, global clients and acquirers, Asia Pacific, Visa, said: "The future of payments will be shaped by how different forms of money and payment networks work together for different use cases. Through Bloom and our pilot with Nium in Singapore, we are exploring how stablecoins can complement existing payment infrastructure, enabling greater flexibility in settlement while preserving the security, resilience and compliance standards that underpin global commerce."

Project context

The pilot is part of a broader effort by MAS to explore how stablecoins can be integrated into the existing payments ecosystem. By working with a regulated stablecoin framework, the project aims to maintain the high standards of security and compliance that banks and regulators expect.

Implications for banks

If successful, the pilot could demonstrate that stablecoins can be used for cross-border settlements with the same reliability as traditional fiat currencies. Banks would then be able to offer clients faster settlement times and potentially lower costs, while still meeting regulatory requirements.

The project is reported by Finextra, which has covered the development of the Bloom initiative and its partnership with Visa and Nium.