Visa's Stablecoin Settlements Surpass $20 Billion as Card Volume Soars

Visa's stablecoin business is expanding rapidly, with over 160 stablecoin-linked card programs live globally in its fiscal second quarter. The payment volume across those programs rose nearly 200% year over year, exceeding $20 billion in annualized run rate, more than 15 times the level recorded a year earlier.

The growth of stablecoin cards is creating new challenges for issuers and lenders. Every card program has to meet its daily settlement obligation before cardholders repay what they owe, but traditional credit facilities can be too expensive and slow for smaller programs that need capital drawn and repaid daily.

To address this gap, Credit Coop, working with Visa, has built a stablecoin-denominated revolving credit facility. The system uses a smart contract called Spigot to route settlement receivables and automatically service repayments, similar to a traditional lender lockbox but through code.

The platform has financed more than $2.5 billion in cumulative volume, processed over 3,000 borrow events and 9,000 repayments, with zero defaults. The success of this model could pave the way for banks and lenders to participate in stablecoin-linked credit, creating a new class of receivables-backed credit that can be monitored and serviced in real time.