Visa Expands Financing for Stablecoin-Linked Card Issuers

Visa is expanding its financing options for stablecoin-linked card issuers and fintech companies by combining payment data with on-chain lending infrastructure. The move aims to help these entities secure working capital more easily.

According to Visa, it has developed a model that uses both settlement data from its payment network, VisaNet, and blockchain transaction records to automate lenders' creditworthiness assessments and funding decisions. This model can assess card issuers' creditworthiness using information on settlement funds due after card payments and on-chain transaction histories with the operator's consent.

Visa has reported that more than 160 stablecoin-linked card programs are currently operating on its network, with related payment volume rising about 200% from a year earlier. The annualized volume of stablecoin payments has surpassed $20 billion, exceeding 15 times the level seen in the previous year.

In a test case, Visa worked with Credit Coop, a decentralized lending platform, which provided over $2.5 billion in settlement financing through the program since 2023 without any defaults occurring in participating loans so far.