Visa is expanding the use of its settlement data to support blockchain based lending for stablecoin linked card programs and digital asset fintechs. The payments giant now has more than 160 stablecoin linked card programs on its network, while payment volume from those programs has increased nearly 200% year over year.
Visa is moving deeper into blockchain based finance as demand for stablecoin linked payment cards accelerates, giving lenders access to payment settlement data that can help them assess the financial performance of digital asset focused fintech companies and card issuers.
The payments giant said Tuesday that it is combining VisaNet settlement data with onchain lending infrastructure to help stablecoin linked card programs obtain working capital and settlement financing.
The move addresses a financing challenge facing newer digital asset payment companies. Traditional lenders can require significant operating history, scale and manual underwriting before extending credit, while growing card programs often need funding to meet settlement obligations before receiving payments from cardholders.
Visa said more than 160 stablecoin linked card programs are now operating on its network, with payment volume from those programs growing nearly 200% year over year. Its stablecoin settlement volume has also surpassed a $20 billion annualized run rate, more than 15 times the level recorded a year earlier.
Visa's head of crypto, Cuy Sheffield, described stablecoin linked cards as being in "hypergrowth mode" in an interview with CNBC.
Under the new financing model, authorized lenders can use Visa settlement information alongside blockchain transaction records to obtain a clearer view of a payment company's performance. The information can help lenders determine credit exposure, size financing facilities and verify repayments.
Visa is working with Credit Coop on an early implementation of the model. Credit Coop provides onchain revolving credit facilities to stablecoin-linked card programs, using smart contracts to automate elements of funding, collateral management and repayment.
Visa said the infrastructure has financed more than $2.5 billion in cumulative settlement volume since 2023, with more than 3,000 borrowing events and 9,000 repayment events executed onchain. The company said participating facilities have recorded zero defaults.
The model has been used by Rain, a Visa Principal Member that supports stablecoin card programs. Visa said Rain has used a Credit Coop facility since August 2023 to fund its daily settlement obligations.
The expansion comes as Visa continues to build its broader stablecoin infrastructure. In April, the company expanded its stablecoin settlement pilot to additional blockchains, bringing the number of supported networks to nine. Visa said at the time that its stablecoin settlement activity had reached a $7 billion annualized run rate.
Visa subsequently launched its Visa Stablecoin Platform in July, providing financial institutions, fintech companies and crypto native businesses with tools for stablecoin operations, including wallet infrastructure and on- and off-ramp capabilities.
The latest lending initiative extends that strategy beyond payments and settlement, positioning Visa's transaction data as part of the financing infrastructure supporting the emerging stablecoin economy.
As stablecoin linked card programs expand, access to reliable working capital could become increasingly important for issuers seeking to scale without waiting to establish the operating history required by conventional financing markets.
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