Visa uses Onchain credit for payment by Stablecoin card

Visa is integrating on-chain lending into its card settlement system, working with Credit Coop to help stablecoin card issuers cover the money they owe Visa every day.

What’s the scoop?

• Addressing the financing gap: Stablecoin card issuers often have to pay Visa before collecting money from their customers. This means that they must keep extra money available or borrow money to cover the deficit.
• The credit passes in chain: Credit Coop grants these issuers stable credit lines to cover what they owe to Visa. Visa provides settlement data, while Smart contracts automate financing and reimbursement as customer payments arrive.
• Already on a large scale: Visa shared that Credit Coop has funded more than $2.5 billion in volume since 2023, on more than 3,000 loans, more than 9,000 repayments and zero defaults. Having more lenders on board has also reduced borrowing costs for some programs by up to 30%.
• Boom of Stablecoin cards: The funding comes as Visa’s stablecoin business expands rapidly, with more than 160 stablecoin-linked card programs and settlement volume exceeding $20 billion annualizedan increase of more than 15 times compared to last year.