Visa's stablecoin settlement volume crosses $20 billion annualized run rate as on-chain lending rail goes live
Stablecoin settlement volume at Visa (NYSE: V) has crossed a $20 billion annualized run rate, described as more than 15 times the level from a year ago, with an on-chain lending rail added to the stack on September 8.…
Key takeaways
- Visa's stablecoin settlement volume has crossed a $20 billion annualized run rate, more than 15 times the level a year ago.
- Visa added an on-chain lending rail on September 8 that pairs real-time VisaNet settlement data with smart contracts so blockchain lenders can extend short-term credit to stablecoin card issuers.
- The lending rail's first commercial application, with Credit Coop, has supported more than $2.5 billion in cumulative settlement financing since 2023 with zero defaults.
- More than 160 stablecoin-linked card programs are now live globally, with payment volume up nearly 200% year over year.
- Open USD will be the first token on the Visa Stablecoin Platform, followed by USDC later this year.
Stablecoin settlement volume at Visa (NYSE: V) has crossed a $20 billion annualized run rate, described as more than 15 times the level from a year ago, with an on-chain lending rail added to the stack on September 8. The rail pairs real-time VisaNet settlement data with smart contracts, letting blockchain lenders assess live settlement performance before extending short-term credit to stablecoin card issuers facing working capital constraints. The next confirmed step is the launch of Open USD, the initial token on the Visa Stablecoin Platform (VSP), followed by USDC (CRYPTO: USDC) later this year.
The numbers in focus
The lending rail's first commercial application is with Credit Coop, a platform that finances stablecoin-linked card programs. Since 2023, that model has supported more than $2.5 billion in cumulative settlement financing, with zero defaults recorded across participating facilities. Smart contracts on the rail have processed more than 3,000 borrowing events and 9,000 repayments on-chain, with repayment flowing directly from the settlement stream.
More than 160 stablecoin-linked card programs are now live globally. Payment volume on those programs is up nearly 200% year over year. Visa's on-chain analytics dashboard, which filters out bot-driven wash trading, shows more than $350 billion per month in organic stablecoin payment volume across the industry.
The setup and what to watch
The VSP launched in beta in July as a "Wallet-as-a-Service" offering for banks and fintechs, handling key management and token minting and burning on their behalf. Clients access stablecoin infrastructure through existing enterprise security tooling. On the consumer side, the card programs let users spend stablecoins at any Visa-accepting merchant, with Visa handling the conversion so merchants receive local fiat. Open USD is the first token the platform will support, with USDC (CRYPTO: USDC) to follow later this year.
Regulations are the remaining variable. Rules governing stablecoin issuance and reserves are still being finalized, and the shape of that framework will determine how quickly the program scales. The Open USD launch is the next concrete milestone; that print will show whether institutional demand for the VSP matches what the settlement volume numbers already suggest.
Related reading
Filed via finance.yahoo.com