Visa Stablecoin Settlement Tops $20 Billion as Card Volume Surges

Visa’s stablecoin settlement volume has exceeded a $20 billion annualized run rate, more than 15 times the level recorded a year earlier. At the same time, over 160 stablecoin‑linked card programs were live globally in Visa’s fiscal second quarter, with payment volume rising nearly 200% year over year.

Rapid Expansion of Stablecoin Card Programs

The surge indicates that stablecoin cards are moving from experimental pilots to a broader payments rail. The increase in card volume is accompanied by a shift in the financing infrastructure that supports daily settlement obligations.

New Funding Challenges for Card Issuers

Card programs must meet daily settlement obligations before cardholders repay their balances. Traditional financing methods such as warehouse lines or securitization are often too costly or slow for smaller, early‑stage programs that settle seven days a week and require only a few million dollars at a time.

On‑Chain Credit Solution by Credit Coop

Credit Coop, in partnership with Visa, has created a stablecoin‑denominated revolving credit facility that uses a smart contract called “Spigot” to route settlement receivables and automate repayments. The system functions like a traditional lender lockbox but operates entirely on‑chain.

• More than 9,000 on‑chain repayments have been executed.
• Borrowing costs for participating programs have fallen by up to 30% as lenders gain confidence in the structure.

Proof of Concept: Rain and Karta

Rain, a Visa Principal Member, has used Credit Coop since August 2023, financing over $2.5 billion in cumulative volume with zero defaults across more than 3,000 borrow events and 9,000 repayments. Karta employed the same model to build credit history before securing a $125 million institutional credit facility as part of a $140 million financing package.

Implications for the Crypto Payments Landscape

The $20 billion run rate demonstrates that stablecoins are integrating deeper into mainstream payment infrastructure. The next bottleneck may be the ability of banks and lenders to provide rapid, cost‑effective financing for the always‑on settlement layer.