Visa is Connecting Stablecoin Payments to the Onchain Credit Market

Visa is linking its payment settlement data with blockchain-based lenders to help stablecoin-linked card programs access working capital, as demand for crypto-linked payments accelerates.

The payments giant said on Tuesday that more than 160 stablecoin-linked card programs operate on its network, with payment volume from those programs rising nearly 200% year over year.

Visa said its stablecoin settlement volume has exceeded a $20 billion annualized run rate, more than 15 times the level a year earlier.

The company is piloting the financing model with Credit Coop, which provides working capital and settlement financing to stablecoin-linked card programs using smart contracts to automate funding, collateral management and repayment.

With customer authorization, Credit Coop combines Visa settlement data with onchain transaction records to assess credit performance. The pilot has supported more than $2.5 billion in cumulative financed settlement volume since 2023, with no defaults across participating facilities, Visa said.

“Payment companies have always had good collateral in their settlement receivables, but no way to show lenders how it performs in real time,” Chris Walker, founder and CEO of Credit Coop, said in a statement. “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.”

Visa’s head of crypto, Cuy Sheffield, said stablecoin-linked cards were undergoing rapid expansion, with new issuers joining the network every week, CNBC reported. Sheffield described last year’s passage of the U.S. GENIUS Act, which established a regulatory framework for stablecoins, as a “huge” turning point, according to CNBC.

The growth in stablecoin-linked cards reflects a broader effort by payments companies to connect blockchain-based digital assets with conventional financial infrastructure. Stablecoins are cryptocurrencies designed to maintain a stable value, typically by being backed by reserves such as dollars or other assets.

Visa said onchain lending protocols have facilitated more than $694 billion in stablecoin-denominated loans since 2020. Much of that activity, however, has remained within crypto markets rather than financing businesses involved in everyday payments.

Visa said combining payment data with blockchain lending infrastructure could allow lenders to assess financing opportunities for fast-growing digital payment companies that may lack the operating history traditionally required by banks and other conventional lenders.

The initiative adds to Visa’s broader push into stablecoins. In July, the company launched a stablecoin platform designed to enable stablecoin settlement and help financial institutions gain access to digital-asset capabilities.

The company has also been cutting costs while shifting investment toward new payment technologies. Visa eliminated roughly 2,600 jobs, or about 7% of its workforce, with reductions concentrated in technology and product teams. 

Chief Executive Officer Ryan McInerney said the capital freed by the cuts would be reinvested in areas including stablecoins, cross-border payments and business-to-business products.

Visa shares have gained about 7% this year.

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