AI · Decrypt
Visa Taps Onchain Lending to Finance Stablecoin Card Programs
Compiled by KHAO Editorial — aggregated from 2 sources. See llms.txt for citation guidance.
✓ KHAO Verified
Global payment processing giant Visa is combining payment network data with blockchain lending tools to help stablecoin-linked card programs and fintechs borrow working capital.
Key facts
- On its own network, payment volume across more than 160 stablecoin-linked card programs grew nearly 200% year over year, while stablecoin settlement volume rose more than 15-fold to an annualized
- Visa said the model has financed more than $2.5 billion in cumulative settlement volume since 2023, with zero defaults across participating facilities
- The announcement follows Visa’s argument last October that stablecoin lending could bring portions of the $40 trillion global credit market onto blockchains
- Visa cited its work with Credit Coop as an early example of the financing model
Summary
Visa is using settlement data to help lenders evaluate financing for stablecoin-linked card programs. Its stablecoin settlement volume has exceeded a $20 billion annualized rate, according to the company. Visa says an early financing model involving Credit Coop has supported more than $2.5 billion in settlement volume since 2023. Announced on Tuesday, Visa said lenders can use VisaNet settlement data alongside blockchain transaction records to assess a payment business’s performance and determine financing terms.