Visa Merges Settlement Data with On-Chain Lending for Blockchain-Based Credit

Visa has announced that it is combining its VisaNet settlement data with on-chain lending protocols to provide working capital and settlement financing for payment businesses. This initiative aims to bring portions of the $40 trillion global credit market onto blockchains.

The company highlighted Credit Coop as an early example of this model, which has supported more than $2.5 billion in settlement volume since 2023. With customer authorization, Credit Coop combines Visa settlement data with blockchain records to assess credit performance and automate funding, collateral management, and repayment using smart contracts.

Visa stated that on-chain lending protocols have processed over $694 billion in stablecoin loans since 2020, and its own network has seen payment volume across more than 160 stablecoin-linked card programs grow nearly 200% year-over-year. The company's stablecoin settlement volume has surpassed a $20 billion annualized run rate.