Visa reported that its stablecoin settlement volume has climbed to a $20 billion annualized run rate, representing growth of more than 15 times compared with the same period a year earlier. The figure marks a near tripling from the $7 billion annualized pace disclosed in March.

More than 160 stablecoin-linked card programs operated globally during the company’s fiscal second quarter. Payment volume across those programs increased by almost 200% from a year earlier. The programs allow cardholders to spend stablecoin balances while merchants receive conventional fiat payments through Visa’s existing network.

Rapid Volume Growth Outpaces Program Expansion

The latest program count matches the rounded figure Visa shared in June, when settlement stood at the $7 billion annualized level. The sharp rise in settlement volume therefore appears to stem primarily from higher activity within existing programs rather than a large wave of new launches.

Stablecoin-linked cards convert digital asset holdings into merchant payments via Visa’s infrastructure. Issuers must still fund daily settlement obligations with the network before cardholder proceeds fully arrive. Smaller or early-stage programs often require only a few million dollars in working capital yet face high administrative costs with traditional credit facilities, according to Visa.

Credit Facility Supports Daily Settlement Needs

Visa has expanded its collaboration with Credit Coop to address the capital gap. The fintech operates a stablecoin-denominated revolving credit facility secured by the settlement receivables generated by participating card programs. Borrowers draw funds to meet daily Visa obligations and repay the facility as cardholder payments arrive.

Repayments flow through Credit Coop’s Spigot smart contract, which prioritizes principal and interest before releasing remaining amounts to the issuer. Visa transmits authorized daily settlement files through a secure connection, allowing lenders to cross-check onchain records against official network data.

Visa stated that access to this settlement information has lowered borrowing costs by as much as 30% for some programs. Credit Coop reported that its platform has financed more than $2.5 billion in cumulative volume since 2023 across over 3,000 borrowing events and thousands of repayments, with no defaults recorded.

Rain Leads Early Adoption of the Model

Rain, a Visa principal member that provides stablecoin card infrastructure, has used the Credit Coop facility since August 2023. The company has drawn approximately $2 billion through the arrangement, completing more than 2,000 borrowing events and over 7,000 repayments. Those transactions generated at least $1.58 million in interest. Rain settles its Visa obligations in USDC seven days a week, including weekends and holidays.

Visa said every settlement obligation covered by Rain’s facility has been funded on time. Other programs operating under Rain’s issuing infrastructure, including Karta, Moto and Xplace, have also accessed Credit Coop financing. Karta later secured $140 million in broader funding in June, combining a $15 million Series A with a $125 million institutional credit facility.

Just-in-Time Funding Under Development

Visa and Credit Coop are advancing a more precise just-in-time funding approach tied directly to daily settlement files. Under the model, a stablecoin payment matching the exact net amount owed would move automatically to the relevant Visa settlement address. The companies expect the structure could shorten borrowing windows from days to hours and reduce the need for full facility draws in advance.

No launch timeline or details on supported stablecoins and blockchains have been announced for a wider rollout across the more than 160 programs. The current facility remains focused on solving the working-capital constraints that have accompanied the rapid rise in stablecoin settlement activity.