Visa Unveils On-Chain Credit Framework for Fintechs
Visa Inc., the multinational payment technology company, has launched an on-chain credit framework that pairs traditional payment streams with blockchain-based capital. This innovative approach connects fintech partners and stablecoin card issuers to on-chain working capital using VisaNet transaction data and smart contracts.
The goal of this initiative is to bring on-chain lending into everyday commercial activity, providing fast-growing payment businesses with a programmatic and transparent way to finance daily operations. The move comes as the use of stablecoins continues to grow, with more than 160 stablecoin-linked card programs now operating on Visa's network.
According to the company, over $694 billion in stablecoin-denominated loans have moved through on-chain lending protocols since 2020, highlighting the scale of capital flowing through this market. The annualized run rate for stablecoin settlement volume has reached $20 billion, a nearly 15-fold increase year-over-year.
Visa's new model uses settlement receivables as collateral and automates financing and repayments via smart contracts. Since its launch in 2023, the platform has supported over $2.5 billion in cumulative financed volume with zero defaults.