Visa Integrates Onchain Credit for Stablecoin Card Settlements
Visa is integrating onchain credit into its card settlement system through a partnership with Credit Coop. This collaboration aims to address the funding gap faced by stablecoin card issuers, who often need to pay Visa before collecting funds from customers. By offering stablecoin-based credit lines, Credit Coop enables these issuers to cover their obligations without maintaining excessive cash reserves or incurring high borrowing costs. Since 2023, Credit Coop has facilitated over $2.5 billion in volume across more than 3,000 loans and 9,000 repayments with no defaults reported. The partnership is part of a broader expansion for Visa’s stablecoin business, which now includes over 160 card programs and annualized settlement volumes exceeding $20 billion—upover fifteenfold year-over-year. The initiative supports the growing adoption of stablecoins in payment systems while leveraging blockchain technology to automate funding processes via smart contracts. This development could further accelerate the integration of digital assets into traditional financial infrastructure.
Topics: card_payments onchain_lending stablecoins Visa partnership