During the pilot, through a series of real-world transactions, Lloyds used stablecoins to settle $750,000 of payment obligations with Visa, according to the release.
The settlement volume was booked through Lloyds’ Corporate Markets branch in Jersey and then transferred to Visa in the United States, the release said.
The funds reached Visa in under an hour, including over the weekend, per the release.
To test the potential for stablecoin transactions to operate across a variety of blockchain networks, Lloyds used its own node on Canton, while Visa supported settlement on a separate public blockchain, according to the release.
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The pilot allowed the companies to test the ability of stablecoins to reduce the time and complexity involved with cross-border payments, Peter Left, head of digital assets at Lloyds Banking Group, said in the release.
“We’re seeing how digital money could help make international payments faster, more transparent and more flexible for businesses,” Left said. “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.”
Rob Cameron, group country manager, UK & Ireland at Visa, said in the release that the pilot showed a potential solution for businesses that operate across borders and around the clock.
“This pilot with Lloyds shows how stablecoins can work alongside existing banking infrastructure to give financial institutions more choice over how and when they settle funds,” Cameron said. “Visa’s role is to help make these new forms of money practical, interoperable and trusted at scale.”
Canton Network said in a Wednesday post on X: “Cross-border settlement can take a day or more when initiated outside banking hours. In a 7-day pilot, [Lloyds] settled $750,000 in stablecoins using its own node on Canton, with funds reaching [Visa] in under an hour, including over the weekend.”
While stablecoins remain the tiniest fraction of global payment flows, they add a new payment method that can be compelling, Mark Nelsen, head of product for Visa Commercial Money Solutions, told PYMNTS CEO Karen Webster in an interview posted in November.
Conditions in which stablecoins can be compelling include high currency volatility, limited access to banks and bank accounts, and immediate payment urgency, Nelsen said.
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