Visa Combines On-Chain Lending with Stablecoin Card Financing
Visa has introduced a new model that combines on-chain lending with stablecoin card financing. The payments company announced this innovation on September 8, aiming to help stablecoin-linked card programs and fintechs secure working capital.
The model uses authorized settlement data from VisaNet to provide participating lenders with a clearer view of how a card program operates. This information is then combined with blockchain records to assess financing needs and structure capital for settlement purposes.
Credit Coop has been identified as the first implementation of this model, using smart contracts to automate funding, collateral management, and repayment for stablecoin-linked card programs.
According to Visa, the Credit Coop implementation has financed more than $2.5 billion in cumulative settlement volume since 2023, with no defaults across participating facilities.