Overview
- Visa is utilizing settlement data to assist lenders in evaluating financing options for stablecoin-related card programs.
- The company's stablecoin settlement volume has surpassed an annualized rate of $20 billion.
- A financing model initiated with Credit Coop has facilitated over $2.5 billion in settlement volume since the start of 2023.
Visa, a leading global payment processing firm, is integrating payment network insights with blockchain lending solutions to provide working capital for stablecoin-linked card initiatives and fintech companies.
In a recent announcement, Visa revealed that lenders can use VisaNet settlement data in conjunction with blockchain transaction data to evaluate the performance of payment businesses and establish financing terms.
Myriad: What will Ethereum's price do next? Make your prediction here.Rubail Birwadker, Visa’s global head of growth products and partnerships, stated, “We are exploring how reliable payment data and onchain technologies can collaborate to unlock new liquidity avenues, enabling businesses to access capital in a more transparent, programmable manner that aligns with the rapid pace of modern commerce.”
Birwadker noted that stablecoins are revolutionizing the movement of money and presenting opportunities to innovate the underlying payment infrastructure. Visa's analytics dashboard indicates that onchain lending protocols have facilitated over $694 billion in stablecoin loans since 2020.
Within its own network, the transaction volume for over 160 stablecoin-linked card programs surged nearly 200% year-over-year, while the settlement volume for stablecoins increased more than 15 times to exceed an annualized rate of $20 billion.
This announcement follows Visa's assertion last October that stablecoin lending could potentially integrate segments of the $40 trillion global credit market into blockchain technology. In July, Visa launched a stablecoin platform for banks and fintechs, which merges issuance, wallets, transfers, and treasury functionalities with its payment systems.
The company explained, “Conventional financing models typically necessitate substantial scale, operational history, or manual underwriting processes before credit can be accessed. Visa believes that a blockchain-based lending framework, backed by reliable payment data, can help overcome these obstacles while enhancing transparency and efficiency.”
Visa highlighted its collaboration with Credit Coop as an initial example of this financing model. Credit Coop offers working capital and settlement financing, utilizing smart contracts to automate funding processes, collateral management, and repayment. With customer consent, it integrates Visa settlement data with blockchain records to evaluate credit performance.
The loans are based on settlement receivables—the funds a payment business expects to receive—while repayments are sourced from these incoming funds.
Since 2023, this model has financed over $2.5 billion in cumulative settlement volume, reporting zero defaults among participating entities. The announcement did not disclose the names of involved lenders or detail financing rates and broader accessibility.
Visa has also been broadening its stablecoin payment services. In April, it expanded to include five new blockchains—Arc, Base, Canton, Polygon, and Tempo—within its settlement program, raising the total to nine and previously announcing a $7 billion annualized settlement rate at that time.