Visa Unlocks Working Capital for Stablecoin-Linked Card Programs

Visa has launched a program to help stablecoin-linked card programs and FinTechs access working capital through on-chain lending, the company announced in a press release. By combining settlement data from its VisaNet payment network with on-chain credit infrastructure, Visa helps lenders evaluate financing opportunities and extend capital to emerging payment companies.

The program follows the July launch of the Visa Stablecoin Platform, which is now in beta with select clients. The platform gives financial institutions, FinTechs, and crypto companies a single managed environment for minting, redeeming, holding, and transferring stablecoins. In April, Visa added five more blockchains to its global stablecoin settlement pilot, bringing the total number of supported blockchains to nine.

The payment volume of stablecoin-linked card programs operating on Visa's network has grown nearly 200% year over year, with the annualized run rate of Visa's stablecoin settlement volume increasing more than 15 times year over year to surpass $20 billion. Credit Coop, a company that provides working capital and settlement financing for stablecoin-linked card programs, combines Visa settlement data with on-chain transaction records to help assess credit performance and support automated settlement financing.