Visa Taps Onchain Lending To Expand Credit For Stablecoin Card Programs
By CU Today Staff —
SAN FRANCISCO—Visa has unveiled a new approach to onchain credit aimed at helping stablecoin-linked card programs and fintechs obtain working capital by combining Visa settlement data with blockchain-based lending infrastructure.
Visa said more than $694 billion in stablecoin-denominated loans have moved through onchain lending protocols since 2020, but much of that lending has remained concentrated within crypto markets.
"Stablecoins are not only changing how money moves, they're creating opportunities to rethink the financial infrastructure that supports payments," said Rubail Birwadker, global head of growth products and partnerships at Visa. "We're seeing how trusted payment data and onchain technologies can work together to unlock new forms of liquidity, helping businesses access capital in ways that are more transparent, programmable and aligned to the speed of modern commerce."
Visa said more than 160 stablecoin-linked card programs now operate on its network, with payment volume on those programs growing nearly 200% year over year. Its stablecoin settlement volume has surpassed a $20 billion annualized run rate, up more than 15-fold year over year. The initiative builds on Visa's broader stablecoin strategy, including stablecoin settlement and its recently launched Visa Stablecoin Platform.
As an early example, Visa pointed to its work with Credit Coop, which uses smart contracts and Visa settlement data to provide working capital and settlement financing for stablecoin-linked card programs. Visa said the model has supported more than $2.5 billion in cumulative financed settlement volume since 2023 with zero defaults across participating facilities.
"Payment companies have always had good collateral in their settlement receivables, but no way to show lenders how it performs in real time," said Chris Walker, founder and CEO of Credit Coop. "By combining Visa settlement data with onchain infrastructure, we can evaluate live performance, enforce repayment from the settlement flow and extend capital onchain from participating lenders as a program grows."
Originally reported by CU Today.