Visa has introduced a new model that connects its VisaNet settlement data with blockchain-based lending systems, aiming to help stablecoin-linked card programs and fintech companies secure working capital more efficiently. The approach, announced on Tuesday, allows authorized lenders to evaluate borrower performance using a combination of traditional payment settlement records and on-chain transaction activity.

Under the framework, settlement information generated through Visa’s network can serve as a practical input for credit assessments. Lenders gain visibility into a payment business’s receivables—the funds due after transactions clear—alongside blockchain records. This data supports decisions on financing terms and helps automate aspects of funding and repayment tied to everyday payment flows.

How the Settlement-Linked Credit Model Operates

Stablecoin card issuers and similar payment businesses often face a timing gap: they must settle obligations with Visa before collecting corresponding funds from cardholders or merchants. Traditional lenders frequently demand substantial scale, long operating histories, or intensive manual underwriting before extending credit, creating barriers for newer or rapidly expanding programs.

Visa’s initiative positions settlement data as a core underwriting signal within on-chain lending infrastructure. With customer authorization, lenders can review VisaNet files together with blockchain transaction histories to size facilities, monitor performance, and manage repayments. Smart contracts handle funding disbursement, collateral tracking, and collection of repayments directly from incoming settlement proceeds, reducing reliance on manual processes.

Visa noted that traditional financing structures often impose high hurdles before credit becomes available. Blockchain-based lending supported by trusted payment data, the company stated, can address these challenges while adding transparency and efficiency.

Credit Coop Demonstrates Scale With Zero Defaults

An early implementation involves Credit Coop, a blockchain protocol that supplies working capital and settlement financing. Credit Coop uses smart contracts to automate the full loan lifecycle. With authorization, it combines Visa settlement data with on-chain records to assess creditworthiness and manage facilities secured by settlement receivables.

Since 2023 the model has supported more than $2.5 billion in cumulative financed settlement volume across participating facilities. It has processed more than 3,000 borrowing events and 9,000 repayment events programmatically on-chain. Visa reported zero defaults across these facilities.

Repayments are drawn automatically from incoming settlement funds routed through specialized smart contracts, creating an auditable on-chain record of activity. The structure functions similarly to a traditional lockbox arrangement but operates programmatically.

Rapid Growth in Stablecoin Card Activity

The lending initiative arrives amid sharp expansion of Visa’s stablecoin-related business. More than 160 stablecoin-linked card programs now operate on the Visa network. Payment volume across those programs has increased nearly 200 percent year over year.

Stablecoin settlement volume on Visa’s rails has surpassed a $20 billion annualized run rate, more than 15 times the level recorded a year earlier. Visa has described stablecoins as altering how money moves and creating opportunities to redesign payment infrastructure. The company has previously invested across multiple layers of the stablecoin stack, including blockchains, wallets, and applications.

Broader on-chain lending activity has also expanded. Visa’s analytics show that on-chain lending protocols have processed more than $694 billion in stablecoin loans since 2020.

Broader Context for Payment Financing

Visa framed the development as a way to bring on-chain lending closer to everyday commerce rather than limiting it to crypto-native collateral models. By linking settlement outcomes to credit decisions, the approach seeks to expand access for merchant and business use cases tied to card and stablecoin rails.

The company has continued adding blockchains to its stablecoin settlement program and has explored additional stablecoin initiatives, including participation in consortia focused on new dollar-denominated tokens. The settlement-linked lending model is presented as complementary to these efforts, turning growing payment volumes into potential underwriting inputs.

Next steps will center on wider adoption by lending facilities, integration of VisaNet data into additional platforms, and the ability of lenders to scale underwriting while maintaining risk controls. As stablecoin card programs and settlement activity continue to expand, the practical performance of data-driven on-chain credit will determine its role in financing payment-driven businesses.