Visa Unlocks Settlement Data for Blockchain Lenders Amid Stablecoin Boom

Visa has announced that it will provide blockchain lenders with direct access to its settlement data. This move is aimed at speeding up lending for crypto-focused fintechs and card issuers by giving lenders a clearer picture of their financial health.

The demand for stablecoin-linked cards is growing rapidly, with over 160 programs currently in operation - representing a nearly 200% increase from last year. Visa's head of crypto, Cuy Sheffield, notes that new issuers are coming onboard and rolling out cards weekly, citing the 'hypergrowth mode' of stablecoin-linked cards.

To meet this surge in demand, Visa is setting up partnerships with lenders to enable financing programs via smart contracts and onchain credit. The company has already been running a pilot with Credit Coop, which reports $2.7 billion in total volume processed through smart contracts on its platform and claims no borrower has ever defaulted.

Sheffield credits the GENIUS Act as a 'huge' turning point for stablecoin adoption in the US, pointing to increased interest from banks and payment companies. Visa's own stablecoin platform was rolled out in July, enabling financial institutions to tap into digital-asset capabilities.