Visa Taps Onchain Credit for Stablecoin Card Settlement
Visa is bringing onchain credit into card settlement as stablecoin-linked programs scale and settlement volume tops a $20B annualized run rate.
Visa is bringing onchain lending into its card-settlement system, working with Credit Coop to help stablecoin card issuers cover the money they owe Visa each day.
What’s the scoop?
- Solving the Funding Gap: Stablecoin card issuers often have to pay Visa before they’ve collected money from their customers. That means they need to keep extra cash on hand or borrow money to cover the gap.
- Credit Goes Onchain: Credit Coop gives these issuers stablecoin credit lines to cover what they owe Visa. Visa provides the settlement data, while smart contracts automate funding and repayment as customer payments come in.
- Already at Scale: Visa shared that Credit Coop has financed $2.5B+ in volume since 2023, across 3,000+ borrows, 9,000+ repayments, and zero defaults. More lenders joining has also cut borrowing costs for some programs by as much as 30%.
- Stablecoin Cards Boom: The financing comes as Visa’s stablecoin business grows quickly, with 160+ stablecoin-linked card programs and settlement volume above $20B annualized, up more than 15x year-over-year.
David Christopher
David is a writer/analyst at Bankless. Prior to joining Bankless, he worked for a series of early-stage crypto startups and on grants from the Ethereum, Solana, and Urbit Foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.
