Visa Inc. (NYSE: V) is expanding access to financial data for blockchain lenders as demand for stablecoin-linked payment cards surges.
The payments giant said Tuesday it will combine settlement data with onchain lending infrastructure for companies financing digital asset businesses. The program will give lenders more information about the financial performance of fintech firms and card issuers seeking capital. Additionally, Visa expects the data to help lenders evaluate borrowers and accelerate financing decisions as stablecoin businesses expand.
Visa currently operates more than 160 stablecoin-linked card programs for issuers and program managers. That represents a nearly 200 per cent increase from a year earlier as more cryptocurrency businesses introduce payment cards. Meanwhile, Visa crypto head Cuy Sheffield described the market as growing exceptionally quickly. He said stablecoin-focused neobanks, fintech companies and other issuers continue joining Visa’s network and launching new cards every week.
Visa is also developing partnerships that could connect those issuers with financing delivered through smart contracts and blockchain-based credit markets. The company has already tested the approach with Credit Coop, an onchain lending platform. Credit Coop says its smart contracts have processed USD$2.7 billion in total volume without a borrower default. Additionally, Sheffield said the pilot could demonstrate how blockchain-based lending can become integrated with Visa’s broader payments network.
Visa estimates that onchain lending protocols have processed nearly USD$700 billion in stablecoin-denominated loans during the past six years. However, much of that lending remains concentrated within cryptocurrency markets rather than conventional business finance. Visa’s settlement information could give lenders additional operating data when assessing stablecoin companies seeking financing.
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Visa platform connects traditional payments with blockchain finance
Meanwhile, regulatory changes have encouraged more traditional financial institutions to explore stablecoins. The GENIUS Act established a U.S. regulatory framework for stablecoins last year and accelerated institutional adoption. Sheffield said the legislation marked a major turning point for the sector. In addition, banks and large payment companies have approached Visa about incorporating stablecoins into existing services or developing new products.
Visa launched its stablecoin platform in July to support settlements, card programs and digital asset services for financial institutions. The company has positioned the platform as infrastructure connecting traditional payments with blockchain-based financial products.
Furthermore, Mastercard Inc. (NYSE: MA) has invested heavily in stablecoin infrastructure and operates a competing platform. PayPal Holdings Inc. ((NASDAQ: PYPL) and Circle Internet Group Inc. (NYSE: CRCL) also operate stablecoin platforms. Visa shares have gained approximately 7 per cent since the beginning of the year.
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