
Impact Vector: Crypto Infrastructure
Visa and Lloyds pilot stablecoin settlement for cross-border payments - The Paypers — 2026-09-30
## Short Segments Visa and Lloyds Banking Group are piloting stablecoin settlements for cross-border payments, marking a significant shift in financial infrastructure. Coming up, we'll explore how this pilot could redefine transaction speed and transparency. But first, let's dive into the latest developments in stablecoin regulation and launches. MiCA-Compliant Stablecoin USDAU Launches: Business Impact. AllUnity has launched USDAU, a MiCA-compliant stablecoin pegged to the US dollar, across six blockchain networks. This launch is a pivotal moment for regulated stablecoins, as it operationalizes the EU’s Markets in Crypto-Assets framework for business payments and treasury management. USDAU is backed by segregated reserves, ensuring a 1:1 peg to the dollar, and offers built-in foreign exchange capabilities. For finance leaders, this means a new tool for cross-border transactions that aligns with regulatory standards, potentially increasing trust and adoption in the stablecoin market. HSBC prepares RedCoin stablecoin launch with payments in focus. HSBC has announced the upcoming launch of its stablecoin, RedCoin, in Hong Kong. Initially, RedCoin will support peer-to-peer and person-to-merchant transactions, with plans to expand into corporate and institutional uses. A recent survey indicates strong market readiness, with 74% of respondents recognizing stablecoin use cases. This move positions HSBC to leverage its existing customer base and infrastructure to drive stablecoin adoption in everyday transactions, potentially reshaping payment dynamics in the region. HSBC Names New Hong Kong Stablecoin ‘RedCoin’ as Launch Nears. HSBC has officially named its forthcoming Hong Kong stablecoin 'RedCoin,' targeting over 3.3 million users of its PayMe app. The stablecoin aims to facilitate money transfers, shopping, and dining, with a focus on peer-to-peer and merchant payments. The survey backing this launch shows a high level of consumer awareness and readiness for stablecoin integration, suggesting a promising uptake once RedCoin becomes available. This development underscores HSBC's commitment to integrating digital assets into its financial services. AllUnity Is Launching MiCA-Regulated U.S. Dollar Stablecoin USDAU. AllUnity has introduced USDAU, a U.S. dollar-backed stablecoin regulated under the EU’s MiCA framework. This marks AllUnity's fourth fiat-backed token, expanding its digital asset lineup across multiple blockchain networks. USDAU's launch signifies a strategic expansion into dollar settlement and stablecoin-based foreign exchange, offering businesses a regulated and reliable option for digital transactions. This move could enhance liquidity management and cross-border payment efficiency for enterprises operating within the EU. Stablecoin Regulation: What the Fed’s New Draft Means. The Federal Reserve has proposed new rules for U.S. stablecoin regulation, setting clear requirements for reserve backing, redemption, and reporting. This draft, part of the GENIUS Act, aims to provide a comprehensive regulatory framework for payment stablecoins. For businesses, this means a new compliance landscape that could reshape treasury operations and payment systems. The proposal ends years of regulatory uncertainty, offering a clearer path for stablecoin issuers and users in the U.S. market. FCA starts accepting crypto authorization applications ahead of 2027 regime. The UK's Financial Conduct Authority has opened applications for crypto firms seeking authorization under a new regulatory regime set to take effect in 2027. This move marks a significant step towards integrating crypto businesses into the UK's financial regulatory framework, emphasizing consumer protection and market integrity. Companies must apply by February 2027 to continue operations, signaling a shift towards more stringent oversight and potentially increasing trust in the UK crypto market. ## Feature Story Visa and Lloyds pilot stablecoin settlement for cross-border payments. Visa and Lloyds Banking Group have completed a live pilot using stablecoins for cross-border settlements, a move that could transform how financial institutions handle international transactions. The pilot involved settling $750,000 in payment obligations using USDC, with funds reaching Visa in under an hour, even on weekends. This trial marks the first stablecoin settlement between Visa and a major UK bank, highlighting the potential for faster, more transparent, and flexible cross-border transactions. The pilot focused on the settlement process, where financial institutions exchange funds to complete and reconcile payment activities. By using stablecoins, Visa and Lloyds aimed to assess improvements in transaction speed and transparency compared to traditional methods. The results suggest that stablecoin settlements could offer significant advantages, such as round-the-clock operations and reduced delays, which are common in traditional banking systems. This development is particularly relevant for businesses managing liquidity and cross-border payments, as it promises to streamline operations and reduce costs. The successful trial could pave the way for broader adoption of stablecoin settlements in the financial industry, potentially influencing how banks and payment companies approach international transactions. As Visa and Lloyds continue to explore the integration of stablecoins into their settlement processes, the financial sector will be watching closely. The implications of this pilot could extend beyond these two companies, setting a precedent for other financial institutions to follow. The next steps will likely involve further testing and regulatory considerations, as the industry seeks to balance innovation with compliance and security. For now, the successful pilot by Visa and Lloyds represents a significant step towards modernizing cross-border payments, offering a glimpse into a future where stablecoins play a central role in global finance.

