Visa Opens Settlement Data to Blockchain Lenders for Stablecoin Card Financing
Visa's stablecoin settlement volume has surged to a $20 billion annualized run rate, up 15x year over year. The company is now sharing VisaNet settlement data with blockchain lenders to help them extend working capital to stablecoin card issuers, addressing a key funding gap for fintechs in the crypto space.
Key takeaways
- Visa's stablecoin settlement volume reached a $20 billion annualized run rate, up 15x year over year.
- Visa is sharing VisaNet settlement data with blockchain lenders to help them extend credit to stablecoin card issuers.
- This initiative aims to provide fintechs and card issuers with easier access to working capital.
- The move could lead to more stablecoin-linked payment options for consumers.
Visa's stablecoin settlement volume has reached a $20 billion annualized run rate, marking a 15x increase year over year. To support this growth, Visa is now sharing its VisaNet settlement data with onchain lending platforms to help them extend credit to stablecoin card issuers. This initiative aims to provide fintechs and card issuers with the working capital needed to sustain and expand their stablecoin-linked payment programs.
How VisaNet Data Powers Onchain Lending
Visa is leveraging its vast network of payment data to create a more efficient lending ecosystem for stablecoin card issuers. By sharing settlement data with blockchain lenders, Visa enables these lenders to assess the creditworthiness of card issuers more accurately. This data-driven approach helps reduce risk and ensures that lenders can offer competitive interest rates and terms. The Decrypt report notes that Visa is pairing payment settlement data with blockchain lending tools to help fintechs and stablecoin-linked card programs access working capital.
Why This Matters for Stablecoin Card Issuers
For fintechs and stablecoin card issuers, this partnership means easier access to working capital. Traditional lending institutions often view the crypto space with skepticism, making it difficult for these companies to secure the funding they need. By using VisaNet data, blockchain lenders can offer more favorable terms, helping issuers scale their operations and offer more competitive products to consumers.
What This Means for Consumers
The integration of VisaNet data with onchain lending could lead to more stablecoin-linked payment options for consumers. As more fintechs gain access to working capital, they can expand their offerings, potentially leading to lower fees, better rewards, and more widespread adoption of stablecoin cards. This move aligns with Visa's broader strategy to support the growing crypto economy and provide more payment options for consumers.
For more on stablecoin cards, check out our coverage of Tether's tokenized gold Visa card and Solayer's USDC payment card.
Frequently asked questions
What is VisaNet data?
VisaNet is Visa's global payment processing network that handles billions of transactions annually. The data from this network provides insights into payment trends, settlement volumes, and merchant activity.
How does onchain lending work?
Onchain lending involves using blockchain technology to facilitate loans. Lenders and borrowers interact directly on the blockchain, often using smart contracts to manage terms and repayments.
What are stablecoin cards?
Stablecoin cards are payment cards linked to stablecoins, which are cryptocurrencies pegged to the value of traditional assets like the US dollar. These cards allow users to spend stablecoins at merchants that accept Visa.
How will this partnership benefit consumers?
By providing more working capital to stablecoin card issuers, this partnership could lead to more competitive products, lower fees, and better rewards for consumers.