Visa Uses Credit Coop Onchain Loans for Stablecoin Card Settlement

Visa has integrated onchain lending from Credit Coop into its card settlement infrastructure to support stablecoin card issuers managing daily payment obligations. The arrangement addresses a specific funding gap where issuers must remit funds to Visa before collecting corresponding payments from their customers.

Under this system, Credit Coop extends stablecoin credit lines to these issuers. Visa supplies the necessary settlement data, while smart contracts automate the funding and repayment processes as customer transactions clear. This structure replaces the need for issuers to maintain large cash reserves or seek traditional borrowing to cover temporary shortfalls.

Visa reports that Credit Coop has processed over $2.5 billion in volume since 2023. The network has facilitated more than 3,000 borrows and 9,000 repayments with no recorded defaults. Visa notes that the entry of additional lenders has reduced borrowing costs for certain programs by as much as 30 percent.

This financing mechanism coincides with rapid expansion in Visa's stablecoin operations. The company currently supports more than 160 stablecoin-linked card programs. Annualized settlement volume for these programs has surpassed $20 billion, representing a year-over-year increase of more than 15 times.