Visa Deploys $2.5 B On‑Chain Credit Facility to Bridge Card Settlement Gaps

Visa has launched an on‑chain lending program that supplies revolving stablecoin facilities to card issuers facing a daily funding gap between Visa’s settlement deadline and the receipt of cardholder funds. The initiative, announced on September 8, uses the Credit Coop protocol to automate draws, cash‑flow control and repayments via smart contracts.

How the on‑chain facility works

Participating card programs draw stablecoin from a Credit Coop revolving line to meet Visa’s settlement obligation. The funds are sent to Visa’s settlement address, and later cardholder proceeds flow through Credit Coop’s “Spigot” contract, which services interest, replenishes the line and forwards any excess cash to the borrower’s operating account. Visa’s authorized daily settlement files are fed to Credit Coop, allowing the protocol to size facilities, verify repayments and track draws on the blockchain.

Scale and performance metrics

• Visa reports more than 160 stablecoin‑linked card programs in Q2 2026, with payment volume nearly 200 % higher YoY.
• Stablecoin settlement volume exceeded a $20 billion annualized run rate.
• Credit Coop has processed over 3,000 borrow events and 9,000 repayment events.
• Since 2023, the protocol has financed over $2.5 billion of cumulative settlement volume with zero reported defaults.
• Rain, a Visa principal member, accounts for roughly $2 billion of that volume.

Risk and loss structure

The facility is described as secured by settlement receivables rather than traditional crypto collateral. Credit Coop’s contracts can include multiple lenders with priority repayment routes, but the public disclosures do not detail first‑loss equity, guarantees or loss‑waterfall specifics. Technical documentation notes that an arbiter and Spigot owner hold significant control, and edge‑case scenarios such as diverted cash flows or post‑default execution challenges are acknowledged.

Implications for the market

The model offers a senior claim on payment flows, delivering faster, blockchain‑based settlement verification while relying on Visa’s private underwriting data. It provides a bridge for emerging card programs to build operating histories before accessing conventional institutional credit, as illustrated by Karta’s progression from Credit Coop financing to a $125 million institutional facility.