Visa brings onchain credit to its growing stablecoin card business
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Visa is integrating its settlement network, VisaNet, with blockchain-based onchain lending infrastructure to enable lenders to finance payment obligations using settlement data combined with onchain transaction data. This initiative allows onchain lenders to assess borrowers based on Visa settlement records and supports financing of payment settlements. Visa highlighted Credit Coop, a blockchain-based credit protocol, as an early user of this model, having financed over $2.5 billion in cumulative settlement volume since 2023.
Why it matters
According to Visa, the integration of onchain lending with payment settlement can expand the role of onchain credit beyond crypto markets into mainstream payment infrastructure. The company suggests this development reflects how stablecoins are reshaping money movement and offers new opportunities to rethink financial infrastructure, which could impact stablecoin-linked card programs and payment settlement processes. The source does not provide further details on broader market or policy impacts.
Key context
Visa’s stablecoin payment business is rapidly growing, with over 160 stablecoin-linked card programs active on its network and a nearly 200% year-over-year increase in payment volume. Visa’s stablecoin settlement volume has surpassed a $20 billion annualized run rate. The company is investing across all layers of the stablecoin ecosystem, including blockchains, wallets, infrastructure, and applications, and has joined the OpenStandard consortium aiming to issue the OpenUSD stablecoin. Stablecoin transaction volumes have reached record highs, with $1.79 trillion in June and roughly $1.2 trillion in the prior 30 days.
Key numbers and entities
Visa, VisaNet, Credit Coop (blockchain credit protocol), over $2.5 billion financed settlement volume through Credit Coop since 2023, more than 3,000 borrowing events and 9,000 repayments. Over 160 stablecoin-linked card programs on Visa network. Nearly 200% year-over-year payment volume growth. $20 billion annualized run rate for stablecoin settlements. Adjusted stablecoin transaction volume of $1.79 trillion in June and $1.2 trillion over the past 30 days. Rubail Birwadker, Visa’s global head of growth products and partnerships. OpenStandard consortium including Stripe.
What remains unclear
The source does not specify details on the range of onchain lending partners beyond Credit Coop involved in this integration or regulatory considerations affecting this development. It is not clear how widespread the adoption of this integrated financing model will be or the specific terms under which lenders and borrowers operate. Further implications for end users or the broader payments ecosystem beyond Visa’s statements are not detailed.