Visa is combining its settlement data with blockchain credit infrastructure to enable stablecoin-linked card issuers and fintechs access working capital. The move aims to deepen onchain lending integration into everyday payments and support the scaling of crypto-based financial services.
Visa's move signifies a significant step in bridging traditional finance with decentralized technologies, potentially increasing the utility and adoption of stablecoins for everyday transactions and providing crucial working capital for crypto-native financial services.
Visa is deepening its involvement in the crypto space by integrating onchain lending capabilities with its existing payment infrastructure. The company announced it will combine its VisaNet settlement data with blockchain credit infrastructure, enabling issuers of stablecoin-linked cards and fintech companies to access working capital as they scale their operations.
This initiative aims to facilitate everyday payments using stablecoins by providing a more robust financial foundation for card programs. Onchain lending has seen significant growth, with over $694 billion in stablecoin-denominated loans issued since 2020. By leveraging VisaNet data, onchain lenders can better assess the creditworthiness of stablecoin card programs, thereby easing access to financing opportunities.
Visa has been expanding its stablecoin services, having launched its Stablecoin Platform earlier this year. The platform supports stablecoin settlement and has seen substantial growth, with more than 160 stablecoin-linked card programs now running on its network. Payment volume for these programs has increased by nearly 200% year-over-year, and Visa's stablecoin settlement volume has reached an annualized run rate exceeding $20 billion.
In addition to its core integration efforts, Visa is collaborating with Credit Coop to provide working capital and settlement financing for card issuers and fintechs. The company is also reportedly seeking a new stablecoin settlement and over-the-counter (OTC) partner, following Mastercard's acquisition of BVNK. Previously, Visa expanded its stablecoin settlement program to include networks like Coinbase's Base and Polygon. The company has also partnered with SBI Holdings in Japan to launch credit cards that convert spending rewards into digital assets like Bitcoin and Ethereum.