Visa Integrates Onchain Lending with Stablecoin Card Programs

Key facts

• Visa is combining VisaNet settlement data with blockchain lending infrastructure.
• The initiative aims to provide working capital for stablecoin-linked card programs.
• Over 160 stablecoin-linked card programs are now on Visa's network.
• Visa's stablecoin settlement volume has reached a $20 billion annualized run rate.
• Visa is partnering with Credit Coop for settlement financing.

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. Lenders can use VisaNet settlement data alongside blockchain transaction records to assess a payment business’s performance and determine financing terms. Rubail Birwadker, Visa’s global head of growth products and partnerships, stated that 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 noted that onchain lending protocols have processed more than $694 billion in stablecoin loans since 2020. 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 rate above $20 billion. Visa previously argued that stablecoin lending could bring portions of the $40 trillion global credit market onto blockchains. The company introduced a stablecoin platform for banks and fintechs in July that combines issuance, wallets, transfers, and treasury functions with its payment infrastructure. Visa cited its work with Credit Coop as an early example of the financing model, which has financed more than $2.5 billion in cumulative settlement volume since 2023 with zero defaults. Visa has also expanded its stablecoin payment services, adding five blockchains to its settlement program in April.