By combining settlement data from its VisaNet payment network with on-chain credit infrastructure, Visa helps lenders evaluate financing opportunities and extend capital, and helps emerging payment companies obtain working capital, according to the release.
“Stablecoins are not only changing how money moves, they’re creating opportunities to rethink the financial infrastructure that supports payments,” Rubail Birwadker, global head of growth products and partnerships at Visa, said in the release. “We’re seeing how trusted payment data and onchain technologies can work together to unlock new forms of liquidity, helping businesses access capital in ways that are more transparent, programmable and aligned to the speed of modern commerce.”
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The payment volume of stablecoin-linked card programs operating on Visa’s network has grown nearly 200% year over year, and the annualized run rate of Visa’s stablecoin settlement volume has increased more than 15 times year over year to surpass $20 billion, according to the release.
Credit Coop, a company that provides working capital and settlement financing for stablecoin-linked card programs, combines Visa settlement data with onchain transaction records to help assess credit performance and support automated settlement financing, per the release.
“Payment companies have always had good collateral in their settlement receivables, but no way to show lenders how it performs in real time,” Credit Coop Founder and CEO Chris Walker said in the release. “By combining Visa settlement data with onchain infrastructure, we can evaluate live performance, enforce repayment from the settlement flow and extend capital onchain from participating lenders as a program grows.”
The introduction of this program follows the July launch of the Visa Stablecoin Platform, which is now in beta with select clients and gives financial institutions, FinTechs and crypto companies a single managed environment for minting, redeeming, holding and transferring stablecoins.
In April, Visa said it added five more blockchains to its global stablecoin settlement pilot, bringing the total number of blockchains it supports to nine.
In Visa’s Monday press release, Birwadker said: “Visa has spent decades helping make payments more secure, reliable and accessible. As new forms of digital money emerge, we see an opportunity to apply those same principles to the next generation of financial services.”
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