Visa is integrating payment network data with on-chain lending tools in an attempt to provide more convenient sources of working capital for stablecoin-related card projects and fintech companies. At the core of this approach is allowing lenders to refer to both VisaNet settlement data and on-chain transaction records to assess business performance and set financing conditions.

Stablecoin card project seeks working capital

Visa indicates that traditional financing typically requires companies to have a larger scale, a longer operating history, or to go through a more cumbersome manual credit approval process. The company believes that if credible payment and settlement data is integrated into blockchain lending infrastructure, the financing process can become more transparent and more in line with the pace of capital turnover in the payment business.

According to Visa, there are already over 160 stablecoin-related card projects on its platform. The related payment volume has increased by nearly 200% year-on-year, while the stablecoin settlement volume has grown by more than 15 times, exceeding 20 billion US dollars annually.

Using receivable settlements as the source of repayment

Visa cited as an example that Credit Coop has adopted this financing model to provide working capital and settlement financing for payment companies. The approach involves automatically handling loan disbursement, collateral management, and repayment based on smart contracts, and with customer authorization, Visa settlement data is combined with on-chain records to assess credit performance.

This type of loan is mainly used to cover the settlement receivables that a company will receive in the future, and the repayments also come directly from these subsequent inflows of funds. Visa states that since 2023, this model has supported a cumulative settlement volume of over $2.5 billion, and there have been no defaults among those involved in the arrangements so far.

• Stablecoin settlement annualized scale: over $20 billion
• Early financing model supported settlement scale: over $2.5 billion
• Over 160 stablecoin-related card items covered

Visa Continues to expand the stablecoin payment landscape

This arrangement continues Visa's progress in stablecoin payments over the past two years. Last October, Visa proposed that stablecoin lending has the potential to bring part of the global credit market onto the blockchain. This July, the company launched a stablecoin platform aimed at banks and fintech companies, integrating functions for issuance, wallets, transfers, and fund management.

In addition, in April of this year, Visa also included Arc, Base, Canton, Polygon, and Tempo in its stablecoin settlement plan, bringing the total number of supported blockchains to 9. At that time, the company disclosed that the annualized scale of stablecoin settlements was 7 billion US dollars, indicating that its related business continued to expand within a few months.

Visa This time, the list of lending institutions involved was not disclosed, nor were the financing interest rates or the broader scope of availability explained.