Visa announced on the 8th a new initiative linking blockchain-based lending with everyday payments, aimed at helping fintech companies that issue stablecoin-linked cards secure working capital more quickly.
The program combines Visa’s payment data with on-chain lending infrastructure, letting participating lenders assess a card issuer’s performance in real time.
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Visa framed the move as an extension of its broader push to connect traditional payment rails with blockchain technology.
How Visa’s On-Chain Lending Model Works
According to an official report, Visa supplies payment and settlement data that on-chain lenders use to evaluate a fintech’s business performance, using future payment receivables as collateral.
Visa said the effort responds to a gap in the market: more than $694 billion in stablecoin-denominated loans have moved through blockchain protocols since 2020, but most of that activity has stayed confined to crypto trading rather than funding everyday business operations.
Visa currently operates more than 160 stablecoin card programs on its network. The initial live model was built with lender Credit Coop, whose smart contracts automate loan issuance, collateral management, and repayment.
Since 2023, that system has processed over $2.5 billion in financed settlement volume across more than 3,000 loans and 9,000 repayments, with zero defaults, according to Visa.
Credit Coop CEO Chris Walker said payment companies have long held strong collateral in future receivables but lacked real-time ways to prove performance to lenders.
Visa’s Broader Stablecoin Push
The initiative builds on Visa’s existing stablecoin card business rather than launching a new product category.
Visa has positioned on-chain lending as one piece of a wider strategy to bridge traditional financial infrastructure with digital asset technology, following its earlier work issuing and settling stablecoin-linked cards across its network.
Why This Matters
Visa’s move could make it easier for stablecoin-based fintechs to access working capital by turning real-time payment performance into usable on-chain credit. More broadly, it could also help bring blockchain lending beyond crypto markets and into everyday payments and commerce.
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