Dunamu, Visa to launch fiat-backed stablecoin and AI rails

Dunamu and Visa announced a partnership to develop a fiat-backed stablecoin and AI-driven payment rails that will link blockchain-based tokens to Visa’s global payments network. The partners say the system is intended to speed up digital payments, reduce costs and simplify on- and off-ramps between crypto wallets and card and merchant systems.

Under the agreement, Dunamu — the South Korean technology firm that operates the Upbit exchange — will handle blockchain engineering, token issuance and wallet integrations. Visa will provide its payments infrastructure, merchant acceptance network and compliance systems and will handle fiat settlement for merchant transactions.

The project will include a stablecoin designed to hold a stable value relative to fiat currency and payment rails that use machine learning to automate transaction routing, fraud detection and settlement optimization. The AI component will assess transaction flows in real time to choose the most efficient routing method, such as settling via a token transfer on a blockchain or a conventional Visa-cleared payment.

The partners plan to roll out the work in phases, starting with limited pilots to test technical interoperability, compliance processes and user experience. Initial pilots will focus on specific corridors and use cases where cross-border transfers and currency conversion add cost and delay, with the goal of shortening settlement times and lowering fees compared with conventional banking and remittance services.

Regulatory compliance is a stated priority. The companies will work with financial regulators and banks to meet local rules on reserves, transparency and consumer protection. They also plan custody arrangements and reserve audits intended to support the stablecoin’s peg.

Dunamu brings experience running one of South Korea’s largest crypto exchanges and in token markets, wallet management and liquidity provisioning. Visa brings global reach and ties to banks and merchants that should enable tokenized payments to use existing acceptance channels.

A joint statement described the initiative as “an effort to combine tokenized value with established payment rails to improve the speed and cost of cross-border transfers and merchant settlement.”