Key Highlights
- Stablecoin settlement activity on Visa’s platform has reached a $20 billion annual run rate, representing a 15-fold increase compared to last year.
- Over 160 card programs linked to stablecoins now operate on Visa’s infrastructure, with transaction volumes climbing nearly 200% annually.
- Visa is integrating VisaNet transaction data with blockchain-based credit facilities to provide working capital solutions for fintech companies.
- Credit Coop, a smart contract-powered lending platform, has facilitated financing for more than $2.5 billion in settlement activity since launching in 2023 without any payment failures.
- The program has executed over 3,000 loan disbursements and 9,000 automated repayments entirely through blockchain technology.
Visa (V) is bridging traditional payment infrastructure with decentralized finance, creating a novel solution to address liquidity challenges faced by stablecoin-powered card programs operating on its network.
In a Tuesday announcement, the payment giant revealed plans to combine VisaNet settlement information with blockchain transaction histories, allowing authorized lenders to evaluate creditworthiness and provide automated financing to stablecoin card issuers.
The company’s stablecoin-related settlement activity has surpassed a $20 billion annual threshold, marking a more than fifteen-fold expansion from twelve months prior.
Currently, over 160 card programs utilizing stablecoin technology are operational within Visa’s ecosystem. Transaction volumes from these initiatives have grown by approximately 200% on a year-over-year basis.
However, Visa reports that numerous fintech firms and innovative payment providers managing these programs face obstacles securing operating capital from conventional financial institutions. Traditional banks generally demand significant transaction history, established operational track records, or lengthy manual credit evaluations before approving financing.
This new framework aims to address that gap by providing lenders access to settlement receivables—funds that card programs expect to receive once transactions settle—combined with transparent blockchain-verified information.
Credit Coop Demonstrates Viability
Visa has already tested this approach through a partnership with Credit Coop, a decentralized protocol that leverages smart contracts to automate lending, collateral administration, and payment processing.
From 2023 onward, Credit Coop has supported financing for over $2.5 billion in aggregate settlement transactions through participating credit facilities. The initiative has recorded more than 3,000 loan originations and 9,000 repayment transactions, all executed through blockchain technology with a perfect repayment record.
According to Rubail Birwadker, who leads growth products and partnerships globally at Visa, stablecoins are “transforming the movement of value” and opening opportunities to reimagine the underlying systems that support payment processing.
Visa’s Comprehensive Stablecoin Approach
Visa’s commitment to stablecoin technology isn’t a recent development. During the company’s third fiscal quarter earnings presentation in July, executives stated that Visa is “building across every level of the stablecoin ecosystem,” spanning blockchain networks, digital wallets, technical infrastructure, and end-user applications.
The payments network has also become a member of the OpenStandard consortium, which is developing the OpenUSD stablecoin. This initiative includes more than 140 participating organizations, with Stripe among the notable members.
This development follows reports from CoinDesk approximately two weeks earlier indicating that Visa was evaluating potential stablecoin settlement partners with regulatory authorization spanning multiple jurisdictions.
Industry-wide adjusted stablecoin transaction activity reached an all-time high of $1.79 trillion in June. Current 30-day volume figures hover around $1.2 trillion, based on data from Visa’s proprietary analytics platform.
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