Visa wants to make it easier for stablecoin card providers to secure funding through onchain lending.
With the card provider’s authorisation, the payments group will make its settlement data available alongside onchain transaction records to help lenders assess financing opportunities.
Stablecoin card providers need funding to meet daily settlement obligations before collecting money from cardholders.
Newer operators can struggle to obtain traditional financing because they lack the required scale or operating history.
Visa is working with Credit Coop, which provides revolving credit facilities backed by settlement receivables.
Smart contracts automate funding, collateral management and repayments.
“Stablecoins are not only changing how money moves, they’re creating opportunities to rethink the financial infrastructure that supports payments.
We’re seeing how trusted payment data and onchain technologies can work together to unlock new forms of liquidity, helping businesses access capital in ways that are more transparent, programmable and aligned to the speed of modern commerce,”
said Rubail Birwadker, Global Head of Growth Products and Partnerships, Visa.
Credit Coop has supported more than US$2.5 billion in cumulative financed settlement volume since 2023, according to company figures.
Its infrastructure has processed more than 3,000 borrowing events and 9,000 repayments onchain, with no reported defaults across participating facilities.
More than 160 stablecoin-linked card programmes operate on Visa’s network.
Their payment volume grew nearly 200% year on year, while Visa’s stablecoin settlement volume surpassed a US$20 billion annualised run rate.
Featured image: Edited by Fintech News Singapore, based on image by Bozo_Studio via Magnific
