Visa is further extending its stablecoin card business to the financing sector. The company stated that it will make more settlement data available to lending institutions on the blockchain, helping them assess the performance of digital asset fintech companies and card-issuing institutions, thereby reducing financing approval times.

The number of stablecoin cards is increasing rapidly.

Visa to CNBC indicates that there are currently over 160 stablecoin-linked card projects on its network, serving both card-issuing institutions and project managers. This number has increased by nearly 200% compared to the same period last year, reflecting that more and more crypto companies are launching related payment products to users.

Visa, the person in charge of encryption business, Cuy Sheffield stated that new issuers are still continuously joining, including stablecoin banks and fintech companies, with almost a new card project launching every week. As business expansion accelerates, the demand for working capital and credit limits from these institutions is also rising accordingly.

Settlement data integrated with on-chain lending

The new arrangement for Visa is to utilize the settlement data it possesses in conjunction with the on-chain lending infrastructure. As a result, lenders will be able to more clearly see the transaction and settlement activities of the relevant enterprises, thereby enabling them to make faster decisions regarding whether to provide financing or not.

Sheffield revealed that Visa has already carried out pilot cooperation with Credit Coop to provide credit support for stablecoin-linked card service providers. The related financing is completed through smart contracts and on-chain credit tools. Credit Coop stated that its platform has processed a total transaction volume of $2.7 billion, and to date, there have been no borrowers who have defaulted.

Stablecoin regulation encourages institutions to enter the market

Visa Quoted data indicates that over the past six years, on-chain lending protocols have processed loans denominated in stablecoins totaling nearly 700 billion US dollars. However, such activities were previously mainly confined to the crypto market. Visa believes that if payment and settlement data can be included in the assessment, on-chain lending will be better able to meet the needs of businesses that are actually in operation.

The company also mentioned that the GENIUS Act passed in the United States last year established a regulatory framework for stablecoins, which promoted their adoption. Sheffield indicates that an increasing number of banks and large payment companies are seeking to cooperate with Visa, hoping to integrate stablecoins into existing products or jointly develop new products.

In July this year, Visa launched a stablecoin platform that covers scenarios such as settlement, stablecoin-linked card expansion, and the ability of financial institutions to access digital assets. As Visa accelerates its deployment, companies such as Mastercard, PayPal, and Circle are also continuously advancing their own stablecoin platforms and payment networks.