Visa Combines Settlement Data with On-Chain Lending for Stablecoin Card Programs
Visa has taken a significant step in bridging the gap between traditional finance and blockchain technology. The company announced that it is combining its settlement data with on-chain lending to help stablecoin-linked card programs access working capital. This move aims to tackle a long-standing issue of liquidity at short notice, which affects many fintech companies.
The problem arises when these firms need to 'anticipate' funds for transactions before receiving the actual payment. Traditional financing channels can be slow and complex, making it challenging for smaller or rapidly growing companies to secure this capital.
Visa's new approach leverages on-chain credit infrastructure and its own data to provide a reliable and real-time view of stablecoin-linked card programs. This information is then used to automate the lending process, eliminating the need for manual procedures.