Visa Leverages On‑Chain Lending to Fund Stablecoin Card Programs

Visa announced a new initiative that pairs its payment settlement data with on‑chain lending platforms. The goal is to provide fintech companies and stablecoin‑backed card programs with a source of short‑term financing.

How the model works

By using transaction data from Visa’s network, the company can assess the cash flow of participating merchants and card programs. This information is then fed into blockchain lending protocols, which extend credit based on the verified settlement history.

Targeted users

The service is aimed at fintech firms that issue cards linked to stablecoins, allowing them to obtain working capital without traditional banking intermediaries.

Potential impact

Integrating on‑chain lending with Visa’s settlement data could streamline financing for stablecoin card ecosystems, reducing reliance on conventional credit lines and potentially lowering costs for end users.