Visa Taps On-Chain Lending for Stablecoin Payments

Visa has announced that it is connecting its settlement network with on-chain lending infrastructure. This move will enable lenders to finance payment obligations using data from the Visa network, which includes settlement records and on-chain transaction data.

The company highlighted Credit Coop, a blockchain-based protocol that extends credit lines to businesses, as an example of this model. Since 2023, Credit Coop has financed more than $2.5 billion in cumulative settlement volume across participating facilities, involving over 3,000 borrowing events and 9,000 repayments.

Visa's global head of growth products and partnerships, Rubail Birwadker, said that stablecoins are 'changing how money moves' and creating opportunities to rethink the financial infrastructure supporting payments. This move comes as Visa's stablecoin-related payment business expands, with over 160 stablecoin-linked card programs now operating on its network.