Visa Stablecoin Settlements Soar Past $20 Billion Annual Rate

Visa announced that the settlement amount for stablecoins has surpassed $20 billion at an annual rate, exceeding last year's figure by 15 times. According to Visa, the settlement amount for stablecoin-linked cards increased by approximately 200% compared to the previous year.

The company stated that one of the challenges facing card issuers is securing funding to cover daily settlements. To address this issue, Credit Coop partnered with Visa to establish a lending framework for stablecoins, which provides financing based on settlement rights and automates repayments through smart contracts.

Visa reported that participating issuers have seen a maximum 30% reduction in borrowing costs using this framework.