The $150 Million Opportunity Hiding in Plain Sight
Bottom Line: Visa's prefunded stablecoin pools currently earn 0%. With programmable yield infrastructure, these reserves could generate $30M-$150M+ annually at 6-9% APY while remaining instantly available for settlements.
What's Happening
In September 2025, Visa announced a pilot program allowing banks and financial institutions to prefund cross-border payouts using stablecoins like USDC and EURC through Visa Direct. This innovation eliminates traditional settlement delays, but there's a critical inefficiency: these funds earn nothing while waiting to facilitate transactions.
Key Facts:
Visa has settled over $225 million through its stablecoin pilot since 2023
The company now supports USDC, EURC, PYUSD, and USDG across Ethereum, Solana, Stellar, and Avalanche
Industry estimates suggest approximately $4 trillion is locked in prefunded foreign currency balances globally
The Math
Conservative Scenario:
$500M average balance × 6% yield = $30M annual revenue
Growth Scenario:
$2B average balance × 7.5% yield = $150M annual revenue
As the stablecoin market grows from $250B today toward $2 trillion by 2028, these opportunities multiply exponentially.
What Are Prefunded Stablecoin Pools?
The Traditional Problem
Traditional cross-border payments require capital tied up in advance across multiple correspondent banks, leading to multiday settlement, foreign exchange slippage, and float costs.
Payment networks solve this by maintaining prefunded balances, reserves positioned strategically for quick payouts. But traditional fiat prefunding creates three issues:
Settlement Delays: 1-3 business days minimum
Trapped Liquidity: Funds locked in specific jurisdictions
Zero Returns: Capital earns nothing while waiting
How Visa's Stablecoin Solution Works
Visa's pilot lets financial institutions load stablecoins into Visa Direct as a standing funding source for global disbursements, with Visa treating those tokens as available balance.
The Process:
Institutions deposit stablecoins to Visa Direct
Visa treats them as instantly available for payouts
Recipients receive local currency
Settlement completes in minutes, not days
The Gap: While these funds wait (minutes to days), they generate zero yield.
The GENIUS Act: How Regulation Creates Opportunities
What Changed July 18, 2025
President Trump signed the GENIUS Act into law, establishing the first federal regulatory framework for payment stablecoins.
The Key Provision
The GENIUS Act prohibits stablecoin issuers from offering any form of interest or yield to stablecoin holders, but does not explicitly prohibit affiliate or third-party arrangements that might offer interest-bearing products.
Translation: Visa (as a user, not issuer) can partner with infrastructure providers to generate yield on stablecoin reserves, it's explicitly permitted.
Why This Matters
The Structure:
✅ Visa maintains custody of stablecoins
✅ Third-party infrastructure analyzes opportunities
✅ Visa approves and signs transactions
✅ No regulatory gray area
Payment stablecoin issuers must maintain 100% reserves in high-quality liquid assets like U.S. dollars or short-term Treasuries, with monthly reporting requirements and examination by registered public accounting firms.
Implementation Timeline:
Takes effect 18 months after enactment (January 2027) or 120 days after final regulations
Three-year grace period for existing market participants
How Programmable Yield Infrastructure Works
The Core Innovation
Traditional finance forces a choice: instant liquidity OR yield generation. Blockchain infrastructure enables both simultaneously.
Traditional Finance:
Deposit → Lock-up Period → Yield → Waiting Period → Available (Days to weeks of illiquidity)
Programmable Infrastructure:
Deposit → Instant Yield → Continuous Returns → Instant Withdrawal (Zero lock-up, always liquid)
Technical Architecture
1. Custody-Agnostic Design
Payment networks maintain 100% control through existing custody solutions (Fireblocks, BitGo, Anchorage). The infrastructure provides:
Real-time opportunity analysis across DeFi protocols
Optimized transaction strategies
Performance monitoring and reporting
Emergency procedures
2. Yield Sources on Solana
Leading Solana protocols like Solend, MarginFi, and Kamino offer annual yields on USDC deposits ranging from 24% to 39%, though typical sustained rates are more conservative at 6-9% APY.
How Yields Are Generated:
Lending to traders who pay borrowing fees
Liquidity provision for decentralized exchanges
Automated market-making strategies
All protocols are overcollateralized (borrowers deposit more than they borrow)
Protocol Maturity:
Drift Protocol: 2+ years operational, $500M+ TVL
Kamino Finance: 1.5+ years, $1B+ TVL
All independently audited by firms like Kudelski Security
3. Liquidity Tiers
Portfolio Structure:
Tier 1 (20%): Instantly available, 0% yield
Tier 2 (30%): 1-minute withdrawal, 6-7% yield
Tier 3 (50%): 5-minute withdrawal, 7-9% yield
Blended Yield:
(20% × 0%) + (30% × 6.5%) + (50% × 8%) = 5.95% portfolio yield
Even with conservative liquidity buffers, the portfolio generates nearly 6%, infinitely better than 0%.
Revenue Calculations: Real Numbers
Scenario Analysis
Phase 1: Pilot ($500M)
$500M × 80% utilization × 6% yield = $24M annual revenue Monthly: $2M
Phase 2: Scaled Adoption ($2B)
$2B × 85% utilization × 7.5% yield = $127.5M annual revenue Quarterly: $31.9M
Phase 3: Market Leadership ($5B)
$5B × 90% utilization × 8% yield = $360M annual revenue
Comparison Table
Approach | Annual Yield | Liquidity | Risk Level |
Traditional Banking | 0-0.5% | Instant | Very Low |
Money Market Funds | 3-4% | 1-2 days | Low |
Tokenized Treasuries (BUIDL) | 4-5% | Same-day | Low |
DeFi Single Protocol | 6-9% | Instant | Low-Medium |
Optimized Multi-Protocol | 6-9% | Instant | Low |
Implementation Roadmap
Phase 1: Pilot Program (Months 1-6)
Allocation: $50-100M (5-10% of total pools)
Actions:
Partner with proven infrastructure provider
Deploy on Solana for optimal speed/cost
Use only audited, top-tier protocols
Maintain 30% instant liquidity buffer
Success Metrics:
✅ Zero settlement delays
✅ 5%+ actual yields
✅ No security incidents
✅ Full compliance
Phase 2: Expansion (Months 6-18)
Allocation: 25-50% of total pools
Enhancements:
Add Ethereum for institutional protocols
Incorporate tokenized money market funds like BlackRock's BUIDL for regulated 4-5% baseline yields
Implement predictive liquidity models
Launch partner revenue-sharing programs
Target: $500M-$1B generating 6-8% blended yields
Phase 3: Full Integration (Months 18-36)
Allocation: 70-90% of prefunded pools
Capabilities:
Multi-stablecoin optimization (USDC, EURC, PYUSD)
Cross-chain strategies across all supported blockchains
White-label solutions for banking partners
Advanced programmable treasury features
Target: $2B+ generating $100M+ annual revenue
Enterprise Risk Management
1. Smart Contract Risk
Mitigation:
Use only protocols with 12+ months history
Multiple independent security audits required
Never exceed 30% in single protocol
Diversify across minimum 3-5 protocols
Track Record: Major Solana DeFi protocols have operated 1-2+ years without significant exploits.
2. Liquidity Risk
Strategy:
Tiered liquidity model (20% instant, 80% sub-5-minute)
Predictive analytics for settlement volume
Daily stress testing at 3x average volume
Automatic rebalancing before high-volume periods
3. Yield Volatility
Approach:
Budget conservatively at 6% even when rates are 8-9%
Combine DeFi yields with stable tokenized treasuries
Set 4% minimum yield threshold
Reallocate when rates drop below acceptable levels
4. Regulatory Compliance
Framework:
Structure as third-party yield service explicitly permitted under GENIUS Act
Maintain separation from stablecoin issuance
Comprehensive audit trails for all transactions
Modular architecture adapts to regulatory changes
5. Operational Risk
Controls:
Multi-signature requirements for large transactions
Role-based access with least privilege
Redundant infrastructure across cloud providers
Insurance coverage through DeFi and traditional policies
Competitive Advantages Beyond Revenue
1. Lower Cost Structure
Generate $150M in yield → Offset operational costs → Offer 1-2% transaction fees vs. competitor's 2-3% → Gain market share while maintaining margins
2. Enhanced Partner Value
Yield-Sharing Model:
Bank prefunds $100M
Generates $7M annually at 7%
Split 60/40: Bank gets $4.2M, Visa gets $2.8M
Bank earns on required operational capital
Visa deepens relationships and increases volume
3. Market Leadership
Stablecoin transaction volumes surpassed Visa and Mastercard combined in 2024, reaching $27.6 trillion. First mover in yield optimization establishes industry standard and creates network effects.
4. Treasury Expertise
Building yield infrastructure creates broader capabilities:
Optimize all corporate stablecoin holdings
Treasury-as-a-service offerings
Consulting for corporate treasurers
New revenue streams beyond payment processing
FAQ: Stablecoin Yield for Payment Networks
Q: How can payment networks earn yield on stablecoin reserves?
Partner with specialized infrastructure providers analyzing yield opportunities across DeFi lending, tokenized treasuries, and regulated sources. Current Solana protocols offer 6-9% APY with instant withdrawals.
Q: Is this legal under the GENIUS Act?
Yes. The Act prohibits issuers from paying interest, but explicitly permits third-party arrangements. Visa is a user, not an issuer, so yield partnerships are fully compliant.
Q: How much could Visa generate?
$500M pools × 6% = $30M annually (conservative) $2B pools × 7.5% = $150M annually (growth scenario)
Q: Does yield compromise instant settlements?
No. Tiered liquidity (20-30% instant, remainder one-transaction withdrawal) achieves 5-7% blended yields with zero settlement delays.
Q: What are the main risks?
Smart contract vulnerabilities, liquidity constraints, yield volatility, and regulatory changes. Mitigated through diversification, liquidity buffers, conservative assumptions, and adaptable architecture.
Q: How does this compare to traditional treasury management?
Traditional: 0-0.5% in checking or 3-4% in money markets with 1-2 day access Stablecoin: 6-9% with instant access via blockchain-native capabilities
Q: What's the implementation timeline?
3-6 months pilot, 6-18 months expansion, 18-36 months full deployment
Q: How does RebelFi enable this?
RebelFi provides custody-agnostic programmable infrastructure for institutional stablecoin operations, enabling automatic yield optimization across Solana's DeFi ecosystem while maintaining instant liquidity.
Conclusion: The Programmable Money Revolution
Visa's stablecoin prefunding pilot is revolutionary, but incomplete. Current implementation leaves billions earning 0% when they could generate $30M-$150M+ annually through programmable yield infrastructure.
The Opportunity:
Transform payment infrastructure from cost center to profit center
Generate substantial revenue while maintaining instant settlements
Create competitive advantages through better partner economics
Establish market leadership in programmable money era
The Technology:
Exists today, proven at scale
6-9% yields on Solana DeFi protocols
Instant liquidity preservation
Enterprise-grade risk management
The Regulatory Environment:
GENIUS Act provides clear framework
Third-party yield explicitly permitted
Federal preemption eliminates complexity
Implementation timeline: 18 months
The Window: Stablecoin market growing from $250B toward $2T. First movers gain network effects and sustainable advantages. Timeline measured in months, not years.
The revolution isn't in moving money faster, it's in making money programmable.
About RebelFi
RebelFi builds programmable stablecoin infrastructure for institutional operations. Our platform enables payment networks and enterprises to optimize yields (6-9% APY) while maintaining instant liquidity. Built on Solana for maximum efficiency.
Core Capabilities:
Custody-agnostic yield optimization
Instant liquidity for payments
Multi-protocol risk management
Enterprise compliance & reporting
Programmable payment infrastructure
