Visa links settlement data to blockchain lending for fintechs

Visa announced on September 8 that it is combining VisaNet settlement data with blockchain-based lending infrastructure to help stablecoin-linked card programs and fintechs access working capital. The company said lenders can use Visa settlement records alongside onchain transaction data to assess borrowers and finance settlement obligations. The announcement arrives as payment volume across stablecoin-linked card programs on Visa’s network has grown nearly 200% year over year, according to Visa.

Visa brings onchain lending into everyday payments

Visa’s new approach connects information from its settlement network with onchain credit infrastructure. According to the company, this information can give lenders a clearer view of how a payment program is operating and help them evaluate financing opportunities that fit their needs. Visa is positioning the model as a way to extend capital in support of stablecoin-linked card programs and other payment businesses.

The company said access to working capital can be difficult for emerging payment companies during periods of rapid growth. Visa noted that traditional financing structures can require significant scale, operating history or manual underwriting before credit is available. Its stated view is that blockchain-based lending infrastructure, combined with trusted payment data, can help address those challenges while adding transparency and efficiency to the financing process.

Rubail Birwadker, Visa’s global head of growth products and partnerships, said the company sees stablecoins as changing how money moves and creating an opportunity to rethink the financial infrastructure that supports payments. Visa said trusted payment data and onchain technologies can work together to create new forms of liquidity and help businesses access capital in ways aligned with the speed of modern commerce.

Credit Coop is an early example of the model in practice. Visa’s work with the blockchain-based protocol focuses on working capital and settlement financing for stablecoin-linked card programs. Credit Coop uses smart contracts to automate funding, collateral management and repayment. With customer authorization, it combines Visa settlement data with onchain transaction records to help assess credit performance and support automated settlement financing.

Visa said this structure creates a transparent and auditable record of financing activity. The company’s announcement centers on the use of settlement information and onchain records together. Its broader objective is to connect established payment infrastructure with programmable lending tools that can be used by participating lenders and payment programs.

The initiative is part of Visa’s wider stablecoin strategy, which the company said includes its Visa Stablecoin Platform, stablecoin settlement, stablecoin-linked card programs and digital-asset capabilities for financial institutions. Visa described onchain credit as an extension of its efforts to bridge traditional financial infrastructure with emerging digital-asset technologies.

Visa’s stablecoin volumes accelerate

Visa said more than 160 stablecoin-linked card programs now operate on its network. Payment volume across those programs has grown nearly 200% year over year. The company also said its stablecoin settlement volume recently surpassed a $20 billion annualized run rate, up more than 15 times from year-ago levels.

Those figures provide the backdrop for Visa’s effort to bring lending infrastructure closer to payment settlement. The company is not presenting onchain lending as separate from its stablecoin card activity; instead, it is linking lending tools and settlement data to the programs that operate on its network. Visa said the combination can help lenders understand a program’s performance when considering financing opportunities.

Visa cited its Onchain Analytics Dashboard in describing the scale of the broader market. Since 2020, more than $694 billion in stablecoin-denominated loans have been sent through onchain lending protocols, according to the dashboard. Visa said that market operates around the clock, but much of its activity has remained concentrated in crypto markets rather than meaningfully supporting everyday businesses and payment experiences.

The company’s announcement presents its new approach as an attempt to bridge that gap. By pairing VisaNet settlement data with blockchain lending infrastructure, Visa says lenders can use information from the payment network together with onchain transaction records when assessing financing for settlement obligations. The company believes this can support payment programs seeking capital as they grow.

Stablecoin activity has also expanded more broadly. Adjusted stablecoin transaction volume reached $1.79 trillion in June, while volume over the prior 30 days stood at roughly $1.2 trillion, according to Visa’s analytics dashboard. Visa’s release places those measures alongside its own stablecoin card-program and settlement figures as part of the context for the onchain-credit initiative.

On the Credit Coop side, Visa said the model has supported more than $2.5 billion in cumulative financed settlement volume since 2023 across participating facilities. The infrastructure has processed more than 3,000 borrowing events and 9,000 repayment events programmatically onchain. Visa also reported zero defaults across participating facilities to date.

Visa said payment companies have settlement receivables that can serve as collateral, while onchain infrastructure and settlement data can provide a way to evaluate performance and automate financing activity. The company sees models that combine payment infrastructure, tokenized assets and programmable financial services as having potential applications across lending, treasury management and settlement in the payments ecosystem.

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