Visa Develops $2.5 Billion Blockchain Credit Model

Visa is working on a new model to address the financing needs arising from the growth of stablecoin-linked card programs. The system, developed in collaboration with Credit Coop, combines Visa's real-time payment data with a blockchain-based credit infrastructure. According to the company's statement, this model has supported over $2.5 billion in financed payment/settlement volume since 2023, with no defaults occurring during this process. Cuy Sheffield, head of Visa's crypto unit, noted that stablecoin-linked cards are growing rapidly, with new fintech companies and card issuers joining the system every week. Visa's stablecoin payment volume has exceeded $20 billion annually, increasing 15 times compared to the previous year. Under Visa's new model, the actual payment performance of card programs can be used in financing decisions by lenders; funding is provided through smart contracts and on-chain credit infrastructure. According to Visa, approximately $700 billion in stablecoin loans have been executed through blockchain-based credit protocols over the past six years.

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