Visa Unveils On-Chain Lending Initiative for Stablecoin Card Firms
Visa has launched an on-chain lending initiative aimed at helping fintech companies that issue stablecoin-linked cards secure working capital more quickly.
The program combines Visa's payment data with on-chain lending infrastructure, allowing participating lenders to assess a card issuer's performance in real-time using future payment receivables as collateral.
Visa supplies payment and settlement data that on-chain lenders use to evaluate a fintech's business performance. The effort responds to a gap in the market: more than $694 billion in stablecoin-denominated loans have moved through blockchain protocols since 2020, but most of that activity has stayed confined to crypto trading rather than funding everyday business operations.
The initial live model was built with lender Credit Coop, whose smart contracts automate loan issuance, collateral management, and repayment. Since 2023, that system has processed over $2.5 billion in financed settlement volume across more than 3,000 loans and 9,000 repayments, with zero defaults.