Visa says stablecoin settlement on its network has surpassed a $20 billion annualized run rate, more than 15 times the level recorded a year earlier, as card issuers increasingly use blockchain-based dollars to fund and settle consumer spending. The payments company is pairing that growth with a new form of onchain credit designed to cover the daily cash obligations of stablecoin-linked card programs.
More than 160 stablecoin-linked card programs were operating globally in Visa’s fiscal second quarter, the company said. Payment volume across those programs increased nearly 200% from the same period a year earlier. The figures place card settlement, rather than trading activity, at the center of Visa’s latest stablecoin strategy.
The company’s focus is on a practical constraint facing card issuers. Networks require issuers to meet settlement obligations each day, while cardholders may pay their balances later. That timing gap creates a need for working capital, particularly for newer programs that have limited balance sheets but must settle transactions reliably from their first day of operation.
Credit facility targets the settlement gap
Visa said it has worked with Credit Coop to create a stablecoin-denominated revolving credit facility backed by settlement receivables. The structure uses Visa’s daily settlement files to calculate the amount of financing available, while Credit Coop’s Spigot smart contract automates funding sizes and repayment flows.
A revolving facility allows an issuer to borrow against expected settlement receipts, repay once those funds arrive, and draw again for the next cycle. In this case, the system is built around daily obligations rather than the longer credit periods often associated with conventional corporate financing.
That structure could be particularly useful for smaller card programs. Visa said some early-stage issuers operate with only a few million dollars in capital while facing daily settlement requirements, a scale at which a conventional warehouse credit facility may be difficult or uneconomical to arrange.
The arrangement also connects a traditional payments process with smart-contract-based lending in a narrowly defined way. Funding is linked to receivables generated through card settlement rather than being extended against the fluctuating market value of a cryptocurrency asset. That distinction reduces the role of token-price volatility in the underwriting model, though it leaves lenders exposed to operational and receivables-related risks.
Visa said borrowing costs for participating programs have fallen by as much as 30% as more lenders have begun underwriting the facilities. The company did not provide a specific period for that comparison or disclose the interest rates paid by individual issuers.
Rain has financed about $2 billion through the model
Rain, a card and payments company, has used the Credit Coop facility since August 2023 to fund daily settlement obligations, according to Visa. Over that period, Rain financed about $2 billion through the facility, recording more than 2,000 onchain borrowing events and more than 7,000 repayment events.
Visa said the Rain facility had recorded zero defaults. The reported repayment history offers one of the clearest operating examples available for the model, although it reflects the experience of a single program and does not establish default expectations for the growing group of stablecoin card issuers.
Credit Coop reported more than $2.5 billion in cumulative financing volume across its platform since 2023. That total included more than 3,000 borrow events and 9,000 repayment events completed onchain. Rain therefore represents the large majority of the platform’s disclosed financing activity, suggesting the model remains concentrated even as Visa reports rapid growth in the number of card programs.
Karta, a travel card issuer that Visa said launched and scaled using a Credit Coop facility, raised $140 million in June 2026. The financing included a $15 million Series A led by Galaxy Ventures and a $125 million institutional credit facility from Community Investment Management. The transaction illustrates how stablecoin-linked card issuers may combine venture funding with credit lines tailored to the recurring settlement needs of payments businesses.
Settlement data becomes a lending input
Visa also said that direct integration with its settlement data can allow same-day funding based on the net amount due in each settlement cycle. Such integration would give lenders a more immediate view of payment obligations and expected receivables, potentially reducing the amount of excess capital an issuer must hold while waiting for financing approval.
The company did not disclose how many current programs use direct settlement-data integration. Its adoption will be a meaningful measure of whether the facility can become standard infrastructure across Visa’s stablecoin card network rather than a financing tool used by a small number of early participants.
The model addresses a less visible side of stablecoin payment growth. Issuing a card that spends from a stablecoin balance may appear straightforward to consumers, but the issuer must continuously manage the cash flows required by card-network settlement rules. Stablecoins can move value outside conventional banking hours, yet card programs still need dependable financing arrangements to meet their obligations every day.
Visa’s reported $20 billion annualized settlement run rate indicates that those operational needs are becoming larger and more regular. The expansion of receivables-backed, stablecoin-denominated credit gives issuers a way to finance that cycle using payment data and automated repayment logic, while giving lenders exposure to short-duration settlement flows rather than open-ended cryptocurrency market risk.
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