Visa said its stablecoin settlement volume has exceeded an annualized $20 billion, rising more than 15-fold from a year earlier. The company also said more than 160 stablecoin-linked card programs are now live globally, while payment volume tied to those programs has grown by nearly 200% year over year. According to Visa, these card programs need to complete daily settlement before cardholders repay, and some programs require only a few million dollars of funding per settlement while operating on a seven-day settlement cycle. Visa added that some crypto-linked card businesses are constrained by the working capital needed to match that continuous settlement rhythm. It said onchain credit can cut financing costs by as much as 30%. Visa also referenced a revolving credit tool denominated in stablecoins that Credit Coop launched in partnership with the company. The tool has processed more than 9,000 repayments onchain. Visa said the platform has facilitated more than $2.5 billion in cumulative financing, handled more than 3,000 borrowings and 9,000 repayments, and has recorded no defaults. Visa Principal Member Rain has used the tool since August 2023 to finance daily settlement.
Visa said its stablecoin settlement volume has surpassed an annualized $20 billion, up more than 15 times from a year earlier.
The payments company said more than 160 stablecoin-linked card programs are now live worldwide, and payment volume associated with those programs has climbed by nearly 200% year over year. These card programs must complete daily settlement before cardholders repay. In some cases, each settlement requires only a few million dollars in funding, and the process runs seven days a week.
Visa points to onchain credit for settlement funding
Visa said some crypto-linked card businesses are limited by the working capital needed to match a continuous settlement cycle. It added that onchain credit can reduce financing costs by as much as 30%.
Credit Coop, working with Visa, launched a revolving credit tool denominated in stablecoins. The tool has already executed more than 9,000 repayments onchain. According to Visa, the platform has delivered more than $2.5 billion in cumulative financing, processed more than 3,000 borrowings and 9,000 repayments, and has not recorded any defaults.
Rain, a Visa Principal Member, has used the tool since August 2023 to finance daily settlement.
The report was cited by Bitcoin.com News.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
