Visa Expands Financing for Stablecoin Card Issuers With Payments, On-Chain Data
Summary
- Visa said it is combining payment data with on-chain lending infrastructure to help stablecoin-linked card issuers and fintech companies secure working capital.
- Visa said it is developing a model that uses VisaNet settlement data and blockchain transaction records to automate lenders’ creditworthiness assessments and funding decisions.
- Visa said more than 160 stablecoin-linked card programs are operating on its network, while related payment volume and settlement financing have risen sharply and no defaults have occurred.
Forecast Trend Report by Period
Visa is combining payment data with on-chain lending infrastructure to help stablecoin-linked card issuers and fintech companies secure working capital.
CoinDesk reported on September 8 that Visa is developing a model that would allow lenders to use settlement data from VisaNet, its payment network, alongside blockchain transaction records to assess card issuers’ creditworthiness and provide funding.
The model uses, with the operator’s consent, both information on settlement funds due after card payments and on-chain transaction histories. Visa says that could automate parts of loan underwriting and settlement financing.
More than 160 stablecoin-linked card programs are now operating on Visa’s network, the company said. Related payment volume has risen about 200% from a year earlier.
The annualized volume of stablecoin payments has surpassed $20 billion, more than 15 times the level a year earlier.
Visa previously tested the model with Credit Coop, a decentralized lending platform. Since 2023, more than $2.5 billion in settlement financing has been provided through the program, and no defaults have occurred in participating loans so far.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.