Visa Taps Blockchain Lending to Unlock Liquidity for Stablecoin Programs
Visa is combining payment network data with blockchain lending tools to help stablecoin-linked card programs and fintechs borrow working capital. According to Rubail Birwadker, Visa's global head of growth products and partnerships, this collaboration 'can work together to unlock new forms of liquidity, helping businesses access capital in ways that are more transparent, programmable and aligned to the speed of modern commerce.'
The announcement follows Visa's argument last October that stablecoin lending could bring portions of the $40 trillion global credit market onto blockchains. Visa has already seen significant growth in its stablecoin payment services, with payment volume across over 160 stablecoin-linked card programs growing nearly 200% year over year.
Visa is also expanding its stablecoin settlement program, which now supports nine blockchains and processes an annualized rate of $7 billion. The company's work with Credit Coop demonstrates the potential of this financing model, which has financed more than $2.5 billion in cumulative settlement volume since 2023 without any defaults.