Visa launches onchain credit for stablecoin card schemes

Visa has introduced an onchain credit model for stablecoin-linked card programmes and fintechs, using VisaNet settlement data alongside blockchain lending infrastructure.

The model is designed to help payment companies secure working capital by giving lenders greater visibility into card programme performance. It combines settlement data with onchain transaction records to support credit assessment and financing tied to programme receivables.

Onchain lending has expanded rapidly in digital finance, though much of that activity has remained within crypto markets rather than supporting mainstream payment businesses. More than USD $694 billion in stablecoin-denominated loans have moved through onchain lending protocols since 2020, according to Visa's Onchain Analytics Dashboard.

Visa is positioning the model as part of its broader push into stablecoin-based settlement and card activity. More than 160 stablecoin-linked card programmes now operate on its network, and payment volume across those programmes has grown nearly 200% year on year.

Its stablecoin settlement volume has also surpassed an annualised run rate of USD $20 billion, up more than 15-fold from a year earlier. That growth has increased interest in financing tools for businesses managing digital-asset settlement flows.

For smaller or fast-growing payment companies, access to credit can be difficult because conventional lenders often require a longer operating history, greater scale, or manual underwriting. Visa argues that blockchain-based lending systems could offer a more transparent alternative by using live payment and settlement data to inform lending decisions.

Early model

An early example is Visa's work with Credit Coop, which provides working capital and settlement financing to stablecoin-linked card programmes. The arrangement uses smart contracts to automate funding, collateral management, and repayment.

With customer authorisation, Credit Coop combines Visa settlement data with onchain records to assess credit performance and support automated settlement financing. The model has financed more than USD $2.5 billion in cumulative settlement volume since 2023 and recorded zero defaults across participating facilities, according to Visa.

The infrastructure has also processed more than 3,000 borrow events and 9,000 repayment events onchain, creating an auditable record of financing activity and giving lenders visibility into repayment performance as funds move through settlement flows.

"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 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," Birwadker said.

The arrangement reflects a broader effort by established payments companies to connect traditional transaction networks with blockchain-based financial tools. Stablecoins have become a growing part of that effort because they can be used for settlement, treasury transfers, and card-linked spending without the price swings associated with many other cryptoassets.

Visa has already expanded its presence in this area through its stablecoin platform and support for card programmes linked to stablecoin balances. The latest initiative pushes further into credit, a segment that remains central to payment businesses because liquidity can determine whether fast-growing programmes can meet settlement obligations and maintain customer activity.

Lender visibility

Credit Coop said a longstanding obstacle in this market has been the difficulty of showing lenders how settlement receivables perform in real time. By linking settlement data with onchain enforcement and repayment tools, the model is intended to narrow that information gap.

"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 Chief Executive Officer of Credit Coop.

"By combining Visa settlement data with onchain infrastructure, we can evaluate live performance, enforce repayment from the settlement flow, and extend capital onchain from participating lenders as a program grows," Walker said.

Visa sees onchain credit as an extension of its effort to connect traditional financial infrastructure with digital-asset technologies. Access to liquidity will remain important as payment ecosystems evolve and as tokenised assets and programmable financial services become more widely used, it said.

"Visa has spent decades helping make payments more secure, reliable, and accessible," Birwadker said.

"As new forms of digital money emerge, we see an opportunity to apply those same principles to the next generation of financial services."