# Visa Integrates Blockchain Lending for Stablecoin Card Programs

**Published:** 2026-09-11T08:54:09.399Z  
**Topic:** Crypto Lending  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/45a0386d-a256-440a-a0c9-5301d6399a21

Visa is using blockchain rails to provide working capital to stablecoin card programs, financing $2.5 billion in settlement volume since 2023.

Visa is integrating blockchain-based lending infrastructure with its internal settlement data to provide working capital to stablecoin-linked card programs, a move designed to bridge the recurring funding gap between cardholder payments and network settlement obligations [1, 2]. The initiative, which utilizes the Credit Coop protocol, has facilitated more than $2.5 billion in cumulative settlement volume since 2023, according to data provided by the company [1, 2].

| At a glance | |
|---|---|
| Stablecoin card programs | 160+ |
| Cumulative volume financed | $2.5 billion |
| Settlement run rate | $20 billion annualized |
| Payment volume growth | ~200% year-over-year |

## Bridging the settlement gap
Card programs often face a timing mismatch where they must satisfy network settlement obligations to Visa before receiving corresponding funds from their own customers [2, 3]. This requirement typically necessitates traditional bank credit lines or warehouse financing, which can be difficult for emerging programs to secure due to a lack of operating history [1, 2]. Visa’s new approach uses smart contracts to handle draws and repayments, while authorized Visa settlement files are used to size the facilities and verify performance [2]. 

The model functions as a revolving credit facility where stablecoin-denominated funds are drawn to meet settlement obligations, and cardholder proceeds are subsequently routed through a programmable "Spigot" contract to service interest and replenish the line [2]. Visa reports that this system has executed over 3,000 borrowing events and 9,000 repayments programmatically onchain [1]. The company claims that increased lender participation through this model has reduced borrowing costs for participating programs by as much as 30%, though it did not provide specific facility-level rates or methodology to support this figure [2].

## Scale and risk profile
The growth of this onchain credit initiative coincides with a rapid expansion in Visa’s stablecoin-linked card business. The company currently supports more than 160 such programs, with payment volume increasing nearly 200% compared to the prior year [1]. Furthermore, stablecoin settlement volume on the network has surpassed a $20 billion annualized run rate, a figure more than 15 times higher than the pace recorded one year earlier [1, 2].

While Visa highlights a record of zero defaults across these facilities, the company notes that the data is supplied by Credit Coop and should be reconfirmed [2]. The financing model is secured by settlement receivables rather than liquid crypto collateral, meaning the credit risk is tied to the underlying payment stream generated by cardholders [2]. Because the $2.5 billion figure represents cumulative throughput through revolving facilities rather than outstanding principal, it does not indicate the total capital at risk on any given day [2]. Additionally, while the programmable lockbox provides lenders with control over incoming cash flows, the specific legal protections and loss-sharing arrangements for these facilities remain undisclosed [2].

## What to watch
*   **Facility-level performance:** Whether the zero-default record holds as the number of programs and the total volume of financed settlement continue to scale.
*   **Institutional transition:** Monitor whether more programs follow the path of Karta, which used the onchain facility to build an operating history before moving to larger, conventional institutional credit packages [2].
*   **Legal and technical disclosures:** Any further details regarding first-loss equity, insurance, or the specific waterfall governing losses in the event of a payment dispute or borrower failure [2].

The initiative positions blockchain infrastructure as a bridge for emerging fintechs to access private credit, effectively using Visa’s proprietary settlement data to make receivables observable and financeable in real time. The ultimate test for the model remains how it performs during a period of sustained loss or market volatility, as the current disclosures leave the specific loss-protection mechanisms for lenders largely undefined [2].

## Sources
1. Crypto Briefing — [Visa taps blockchain lending to help stablecoin card programs access capital](https://cryptobriefing.com/visa-onchain-lending-credit-coop/)
2. CryptoSlate — [Visa’s $2.5 billion crypto credit bet puts card settlement financing onchain](https://cryptoslate.com/visas-2-5-billion-onchain-credit-bet-puts-card-settlement-financing-onchain/)
3. PYMNTS.com — [Visa Tests Stablecoin Loans to Fund Card Program Growth](https://www.pymnts.com/visa/2026/visas-stablecoin-strategy-turns-settlement-data-into-working-capital-infrastructure/)

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Cite as: TrendWatcher, "Visa Integrates Blockchain Lending for Stablecoin Card Programs", https://www.trendwatcher.in/article/45a0386d-a256-440a-a0c9-5301d6399a21