Visa Settlement Data Backs $2.5 Billion Credit Model for Stablecoin Cards

The useful part

Visa said more than 160 stablecoin-linked card programmes were live on its network in the fiscal second quarter, with payment volume up nearly 200% year over year. Stablecoin-linked card programmes are creating a working-capital problem as they grow: operators must fund Visa settlement before cardholder payments arrive. Credit Coop's onchain credit infrastructure has financed more than $2.5 billion in cumulative settlement volume since 2023, using Visa settlement data and repayment records to support revolving credit lines.

How it works

• For newer stablecoin-linked programmes, those facilities may be too small or too frequently used for traditional warehouse financing to work efficiently.
• With the programme's authorisation, it receives daily Visa settlement files through a secure data connection and reviews them alongside the borrower's on-chain transaction and repayment history.
• Visa settlement data is part of the process, but Visa does not make the credit decision or take the lender's exposure.
• Those records help size the facility, support disbursement decisions and verify repayments.
• Settlement receivables pass through the contract before reaching the borrower's operating account.

What to take from it

The contract then directs an agreed portion of incoming funds towards interest and principal, while releasing the remaining balance to the operator. The arrangement resembles a lockbox used in conventional receivables financing.

Details worth keeping

Settlement Files Support Lending Decisions The issue is timing. Credit Coop lends against the programme's settlement receivables. Repayment is handled through Credit Coop's Spigot smart contract.