Visa Unveils Blockchain-Fueled Financing Model for Stablecoin Card Programs
Visa has unveiled an innovative financing model that combines payment network data with blockchain lending tools to support stablecoin-linked card programs and fintechs. The company claims that its stablecoin settlement volume has exceeded a $20 billion annualized rate, while the global head of growth products and partnerships, Rubail Birwadker, stated that trusted payment data and onchain technologies can unlock new forms of liquidity for businesses.
The financing model uses VisaNet settlement data alongside blockchain transaction records to assess a payment business's performance and determine financing terms. This allows lenders to evaluate the creditworthiness of businesses in real-time, streamlining the lending process and reducing the risk of default. According to Birwadker, this approach is changing how money moves and creating opportunities to redesign the infrastructure behind payments.
The model has already supported more than $2.5 billion in cumulative settlement volume since 2023, with zero defaults across participating facilities. Visa cites its work with Credit Coop as an early example of this financing model, which combines Visa settlement data with blockchain records to assess credit performance and automate funding, collateral management, and repayment.