Visa has announced that its stablecoin settlement volume surpassed an annualized rate of $20 billion, as the company intensifies efforts to bridge traditional payment networks and blockchain-based lending solutions for card programs and fintechs.
Stablecoin lending data and VisaNet integration
The global payments leader stated that it is providing settlement data via VisaNet to help lenders evaluate the creditworthiness of stablecoin-linked card programs. By combining VisaNet data with onchain blockchain transaction records, lenders can now assess payment businesses’ performance and determine financing terms with improved accuracy.
Visa’s global head of growth products and partnerships, Rubail Birwadker, highlighted the advantages of this approach, noting, “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.”
Stablecoins are transforming money movement and offer opportunities to redesign underlying payment infrastructure, according to Visa’s Rubail Birwadker, who emphasized the growing role of onchain technologies in capital access.
Visa stated that since 2020, blockchain-based lending protocols have processed more than $694 billion in stablecoin loans. On its own network, Visa reported a nearly 200% year-over-year increase in payment volume across more than 160 stablecoin-linked card programs, with settlement volumes climbing over 15 times to an annualized pace exceeding $20 billion.
Credit Coop financing model and impact
Visa pointed to its collaboration with Credit Coop as an example of this new financing model’s effectiveness. Credit Coop, a fintech that delivers working capital and settlement financing through blockchain, utilizes smart contracts for funding automation, collateral management, and repayments. By integrating VisaNet settlement data with blockchain transaction details—subject to user authorization—Credit Coop can better monitor credit performance and streamline lending.
The loans originate from anticipated settlement receivables, with repayments drawn directly from the incoming funds businesses are set to receive. Visa reported that this model has supported more than $2.5 billion in cumulative settlement financing since 2023, with no recorded defaults among participating facilities. Specific lenders, financing rates, and the potential for broader adoption were not disclosed.
Mini dictionary: Credit Coop, a fintech platform specializing in providing working capital and settlement financing to businesses, leverages blockchain smart contracts to automate loan origination, collateral handling, and repayment processes.
Expanding settlement platform and outlook
April saw Visa expand its stablecoin payment services to include five additional blockchains: Arc, Base, Canton, Polygon, and Tempo. With nine blockchains now participating in its settlement program, Visa earlier reported an annualized settlement rate of $7 billion, a figure that has since grown substantially.
The company reiterated that traditional financing structures often require extensive scale, established operating history, or manual underwriting before offering credit. By applying blockchain-based lending supported by trusted payment data, Visa aims to address these hurdles and provide greater transparency and efficiency for both fintechs and card programs seeking short-term capital.
Visa, recognized globally for its payment processing services, expects that the integration of blockchain infrastructure with conventional settlement data can help unlock broader opportunities in commercial lending and liquidity. The company previously suggested that stablecoin lending could transition portions of the $40 trillion global credit market onto blockchain rails.
No specifics were given regarding the timing or broader releases of these services, but Visa’s continued investment in blockchain technology suggests ongoing expansion and experimentation in this evolving field.
| Metric | 2023 | Latest (Annualized) |
|---|---|---|
| Visa stablecoin settlement volume | $7 billion | $20 billion |
| Stablecoin-linked card program payment volume growth | — | +200% YoY |
| Credit Coop cumulative settlements | — | $2.5 billion |
| Number of blockchains in Visa settlement | 4 | 9 |
