Visa Links Settlement Network to On-Chain Lending for Stablecoin Expansion
Payment giant Visa is expanding its stablecoin strategy by connecting its settlement network to on-chain lending. This move will give lenders access to data from VisaNet, allowing them to assess borrowers and finance their settlement obligations using blockchain-based infrastructure.
Visa highlighted Credit Coop, a protocol that extends credit lines to businesses, as an early example of this model. Since 2023, Credit Coop has financed more than $2.5 billion in cumulative settlement volume across participating facilities, with over 3,000 borrowing events and 9,000 repayments.
Visa's global head of growth products and partnerships, Rubail Birwadker, noted that stablecoins are 'changing how money moves' and creating opportunities to rethink financial infrastructure supporting payments. The company's stablecoin-related payment business has expanded significantly, with over 160 stablecoin-linked card programs operating on its network.
Visa also reported that its stablecoin settlement volume has surpassed a $20 billion annualized run rate, more than 15 times year-ago levels. This growth comes as the company invests in each layer of the stablecoin stack, including blockchains, wallets, infrastructure, and applications.