Visa said Tuesday it will expand access to settlement data for companies lending on the blockchain, responding to surging demand for stablecoin-linked consumer cards. The program pairs Visa's transaction data with onchain lending infrastructure, giving lenders greater visibility into the financial performance of digital-asset-focused fintechs and card issuers, with the goal of speeding up borrowing for fast-growing businesses.
Visa currently operates more than 160 stablecoin-linked card programs for issuers and program managers, representing a nearly 200% increase year over year as more cryptocurrency businesses launch cards for customers. "Stablecoin-linked cards are in hypergrowth mode," Cuy Sheffield, Visa's head of crypto, told CNBC. New issuers, including stablecoin neobanks and fintech firms, are joining the network and launching cards every week.
To meet the demand surge, Visa is establishing partnerships that will allow new issuers access to financing programs through smart contracts and onchain credit, Sheffield said. The company has been running a pilot with Credit Coop that enables a credit facility for stablecoin-linked card providers. "We think this is a positive step forward for how onchain credit can start to come into our network," Sheffield said. Credit Coop reports it has processed $2.7 billion in total volume on its platform through smart contracts, with no borrower having defaulted.
Over the past six years, nearly $700 billion in stablecoin-denominated loans have moved through onchain lending protocols, according to Visa. Much of that activity remains concentrated within crypto markets, but Sheffield said the new offering could help lenders better understand how a business is operating, simplifying the evaluation of financing opportunities.
Last year's passage of the GENIUS Act established U.S. stablecoin regulation and accelerated adoption of the technology. Sheffield called the legislation a "huge" turning point, noting that banks and some of the largest payment companies globally are now approaching Visa to engage with stablecoins, either by leveraging existing products or building new ones together.
In July, Visa launched its own stablecoin platform, enabling settlements and expanding its stablecoin-linked card programs to help financial institutions access digital-asset capabilities. The move positions Visa alongside competitors including Mastercard, which is also investing heavily in stablecoins and operates its own platform, as well as PayPal and Circle, which run their own stablecoin offerings. Visa shares have gained roughly 7% year to date.
