Visa Brings Onchain Credit to Stablecoin Card Financing

Visa is connecting its payment settlement data with onchain lending infrastructure to help stablecoin-linked card programs and digital-asset-focused fintechs access working capital.

The payments company told CNBC the initiative will allow participating lenders to use VisaNet settlement data alongside blockchain transaction records to assess the financial performance of card programs and evaluate financing opportunities.

The move comes as stablecoin-linked cards expand across Visa’s network. More than 160 stablecoin-linked card programs are now operating on Visa, with payment volume on those programs increasing nearly 200% year over year. Visa also said its stablecoin settlement volume has surpassed a $20 billion annualized run rate, up more than 15 times year over year.

Visa Connects Payment Data With Onchain Credit

The financing model is designed to address a working-capital gap faced by stablecoin card programs.

Card issuers and payment companies often need to fund their settlement obligations before receiving the corresponding funds from customers. Visa and Credit Coop are testing a model in which Visa settlement data can help lenders assess the performance of those receivables and provide financing through smart contracts.

With customer authorization, Credit Coop combines Visa settlement records with onchain transaction data to evaluate credit performance. Smart contracts can then automate funding, collateral management and repayment.

Visa said the model has already supported more than $2.5 billion in cumulative financed settlement volume since 2023, with more than 3,000 borrow events and 9,000 repayment events executed onchain. The company said participating facilities have recorded zero defaults.

The arrangement effectively connects Visa’s existing payment infrastructure with blockchain-based credit rather than replacing the card network itself.

Credit Coop Pilot Provides Early Test

Credit Coop is an early financing partner in the initiative. The company provides working capital and settlement financing to stablecoin-linked card programs through smart contracts.

Visa said Credit Coop's model allows settlement receivables to serve as the basis for financing, with repayment linked programmatically to incoming settlement flows.

The approach is intended to give lenders more direct visibility into a card program’s performance while allowing issuers to access financing as transaction volumes grow.

Visa's broader stablecoin strategy has increasingly focused on connecting blockchain-based assets with existing payment infrastructure. In July, the company launched the Visa Stablecoin Platform, which provides infrastructure for financial institutions to issue, manage and settle stablecoins.

Stablecoin Cards Move Deeper Into Payment Infrastructure

The latest initiative extends Visa's stablecoin strategy from payments and settlement into the financing layer supporting those activities.

The growth of stablecoin-linked cards is creating demand not only for payment acceptance and settlement, but also for liquidity to support rapidly expanding card programs.

Visa said more than $694 billion in stablecoin-denominated loans have been sent through onchain lending protocols since 2020. The company noted that much of this activity remains concentrated within crypto markets, while the new model is intended to connect onchain credit more directly with businesses operating within conventional payment infrastructure.

The development comes as traditional payment networks increasingly compete to establish stablecoins as part of mainstream financial infrastructure. Mastercard has also expanded stablecoin settlement across its network, including support for intraday, weekend and holiday settlement.

Visa's latest move therefore places onchain credit alongside its existing stablecoin settlement and card initiatives, extending blockchain infrastructure further into the financial operations behind digital payments.