Visa links VisaNet to on-chain lending for stablecoin cards

Visa said it will combine VisaNet settlement records with on-chain lending infrastructure to give lenders clearer visibility into stablecoin-linked card programmes and fintechs. The link is intended to connect payment settlement patterns with on-chain credit activity so lenders can assess financing opportunities and extend working capital.

Visa provided data showing more than $694 billion in stablecoin-denominated loans have flowed through on-chain lending protocols since 2020. The company said much of that lending has remained inside crypto markets and has not been integrated into everyday business payment and financing channels.

More than 160 stablecoin-linked card programmes operate on Visa’s network. Payment volume on those programmes rose nearly 200% year over year. Visa reported stablecoin settlement volume reached an annualized run rate above $20 billion, a rise of more than 15 times year over year.

By pairing VisaNet settlement information with on-chain credit infrastructure, Visa plans to provide lenders transaction and settlement signals tied to stablecoin card programmes. Lenders would be able to observe programme-level risk, transaction volume and cash flow timing to inform underwriting and capital allocation.

On-chain lending protocols allow loans and credit flows denominated in stablecoins to move on blockchain networks and have been a major channel for crypto-native credit.

Rubail Birwadker, global head of growth products and partnerships at Visa, commented: “We’re seeing trusted payment data and on-chain technologies work together to create liquidity and help businesses access capital in more transparent, programmable ways.”

Visa did not give a timeline for the integration and did not name partner lenders publicly.