Visa is expanding its stablecoin-linked card business by opening access to its proprietary payment settlement data for onchain lending purposes. The payment processor is combining VisaNet settlement data with blockchain lending tools to help fintechs and stablecoin-linked card programs access working capital, according to reports from Decrypt, Cointelegraph, and CoinDesk.
The move comes as stablecoin payment activity on Visa's network has accelerated dramatically. Visa's stablecoin settlement volume surpassed a $20 billion annualized run rate, representing a 15x increase year over year, according to CoinDesk. Cointelegraph separately reported that stablecoin payment volume on the network has jumped nearly 200% year over year.
Visa's strategy centers on using its existing infrastructure to bridge traditional finance and blockchain-based credit markets. By making VisaNet settlement data available to blockchain lenders, the company aims to enable these lenders to extend credit to card issuers that are driving growth in the stablecoin segment. This approach allows fintechs operating stablecoin-linked card programs to obtain working capital based on their actual payment settlement history rather than traditional credit assessments.
The integration represents a significant development in how traditional payment networks are adapting to accommodate cryptocurrency-native financial services. Rather than competing directly with decentralized finance protocols, Visa is positioning itself as a data provider and infrastructure layer that can enhance the efficiency of onchain lending markets.
For blockchain lenders, access to VisaNet settlement data provides a verified source of revenue and transaction history that can inform credit decisions. This addresses a longstanding challenge in crypto lending: the difficulty of assessing creditworthiness for businesses operating primarily in digital assets without traditional banking relationships.
The working capital loans are specifically targeted at the issuers behind stablecoin card programs, which have emerged as a major use case for cryptocurrency payments. These programs allow users to spend stablecoins at traditional merchants through card networks, with settlement occurring in digital assets rather than fiat currency.
Visa's entry into onchain lending infrastructure follows broader trends of institutional payment providers building capabilities around stablecoin settlement. The company has previously developed blockchain-based settlement systems for cross-border payments and has increasingly integrated stablecoin capabilities into its core network.
The development also reflects the evolving competitive landscape in payment processing, where traditional networks face pressure from both fintech challengers and blockchain-native payment systems. By offering its data assets to support onchain credit markets, Visa attempts to maintain relevance as an infrastructure provider even as transaction volumes increasingly involve digital assets.
The expansion of stablecoin-linked card programs has created financing needs that traditional banking infrastructure has been slow to address. Working capital requirements for these programs include funding cardholder balances, managing settlement timing gaps, and supporting rapid growth in transaction volumes. Blockchain lenders equipped with VisaNet data could potentially offer more responsive and appropriately priced credit than conventional alternatives.
Visa's approach differs from direct stablecoin issuance or lending activities undertaken by some financial institutions. The company maintains its position as a network and data provider rather than becoming a lender itself, allowing specialized blockchain credit protocols to handle the actual loan origination and management while benefiting from enhanced underwriting data.