Visa has unveiled a new on-chain lending model designed to help stablecoin-linked card programmes and fintech firms access working capital, marking another step in the payments giant’s strategy to bridge traditional finance and digital assets.
The initiative combines VisaNet settlement data with blockchain-based lending infrastructure, enabling lenders to assess the performance of payment programmes using both payment and on-chain transaction data.
Visa believes this approach can unlock new financing opportunities for businesses operating in the rapidly growing stablecoin economy.
According to Visa’s On-chain Analytics Dashboard, more than $694 billion in stablecoin-denominated loans have flowed through on-chain lending protocols since 2020.
While the sector has expanded rapidly, much of that activity has remained concentrated within crypto markets rather than supporting real-world payment use cases.
Visa says its latest offering is designed to change that by connecting established payment networks with programmable lending infrastructure.
“Stablecoins are not only changing how money moves, they’re creating opportunities to rethink the financial infrastructure that supports payments,” said Rubail Birwadker, Global Head of Growth Products and Partnerships at Visa.
“We’re seeing how trusted payment data and on-chain 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.”
The announcement builds on Visa’s broader stablecoin strategy, which includes stablecoin settlement capabilities, support for stablecoin-linked card programmes and the launch of its Visa Stablecoin Platform.
Visa revealed that more than 160 stablecoin-linked card programmes now operate on its network, with payment volumes across those programmes growing nearly 200% year-on-year.
The company also reported that its stablecoin settlement volume has surpassed a $20 billion annualised run rate, representing more than 15-fold growth compared with the previous year.
An early example of the new lending model is Visa’s partnership with Credit Coop, a provider of working capital and settlement financing for stablecoin-linked payment programmes.
The platform uses smart contracts to automate funding, collateral management and repayments while leveraging Visa settlement data to assess credit performance.
Since 2023, the model has supported more than $2.5 billion in financed settlement volume without any reported defaults.
Credit Coop also says it has processed more than 3,000 borrowing events and 9,000 repayment events on-chain, creating a transparent and auditable financing record.
“Payment companies have always had good collateral in their settlement receivables, but no way to show lenders how it performs in real time,” said Chris Walker, Founder and CEO of Credit Coop.
“By combining Visa settlement data with on-chain infrastructure, we can evaluate live performance, enforce repayment from the settlement flow and extend capital on-chain from participating lenders as a programme grows.”
