Visa's Stablecoin Lending Initiative Tackles Card Settlement Gap
Visa's onchain lending initiative aims to address a recurring funding gap in card settlement. The company targets this issue by partnering with Credit Coop, an onchain credit protocol, to supply revolving stablecoin facilities that can fund settlements.
This hybrid credit market uses smart contracts for draws, cash-flow control, and repayment while authorized Visa settlement files remain central to underwriting and facility sizing.
The initiative has seen significant growth, with over 160 stablecoin-linked card programs in its fiscal second quarter of 2026. Payment volume on these programs was nearly 200% higher than a year earlier, reaching an annualized run rate of $20 billion for stablecoin settlement.
Visa characterizes the model as secured only by settlement receivables, setting it apart from DeFi structures where borrowers post more liquid crypto collateral. The company reports that Credit Coop has processed over 3,000 borrow events and 9,000 repayment events across participating facilities.