Visa Taps Blockchain Data to Expand Stablecoin Lending for Payment Firms

Visa is moving deeper into blockchain-based finance with a new initiative that combines its payment network data with onchain lending infrastructure, aiming to make it easier for stablecoin-linked payment businesses and fintechs to access working capital.

The global payments company said Tuesday that lenders can use VisaNet settlement information alongside blockchain transaction data to evaluate a company’s payment activity, credit performance and financing needs.

The approach is designed to give lenders a clearer picture of how a payment business operates before extending credit.

Visa’s global head of growth products and partnerships, Rubail Birwadker, said the combination of established payment data and blockchain technology could open new sources of liquidity for businesses.

Stablecoins are playing a growing role in Visa’s strategy. The company said stablecoin-based payment activity is expanding rapidly and could eventually change how financial infrastructure is built and how businesses access credit.

According to data cited by Visa, onchain lending protocols have handled more than $694 billion in stablecoin loans since 2020.

Stablecoin activity on Visa’s own network has also accelerated. Payment volume across more than 160 stablecoin-linked card programs increased by almost 200% year over year, while stablecoin settlement volume climbed more than 15 times to an annualized rate above $20 billion.

The latest initiative builds on Visa’s broader push to bring credit markets onto blockchain networks. The company argued last October that stablecoin lending could eventually move parts of the roughly $40 trillion global credit market onchain.

Visa has continued expanding its stablecoin infrastructure since then. In July, it launched a platform aimed at banks and fintech companies that brings together stablecoin issuance, wallets, transfers and treasury management with its existing payment network.

The company said blockchain-based lending could also help smaller or newer businesses that struggle to qualify for conventional financing. Traditional credit arrangements can require extensive operating histories, substantial scale and manual underwriting before funding becomes available.

Visa pointed to its partnership with Credit Coop as an example of how the model can work in practice. Credit Coop provides settlement and working-capital financing, using smart contracts to automate areas such as funding, collateral management and repayment.

With permission from customers, Visa settlement data can be combined with blockchain records to evaluate credit performance. Financing is backed by settlement receivables, meaning the money payment companies are already scheduled to receive. Loan repayments are then taken from those incoming funds.

Visa said the arrangement has supported more than $2.5 billion in cumulative settlement volume since 2023, with no defaults reported across the participating financing facilities.

The company did not disclose the lenders involved, financing rates or how broadly the lending program will be offered.

The move comes as Visa continues to build out its stablecoin settlement network. In April, the payments giant added Arc, Base, Canton, Polygon and Tempo to its settlement program, increasing the number of supported blockchains to nine.

At the time, Visa said the program had reached an annualized settlement rate of approximately $7 billion.

The latest initiative shows that Visa's blockchain strategy is extending beyond payments alone. By combining its existing financial data with programmable lending infrastructure, the company is positioning stablecoins as part of a broader system for payments, settlement and business financing.