Visa’s stablecoin card business is exploding, with volume nearly tripling in a year

Visa (NYSE: V) is watching its stablecoin card business grow much faster than a year ago. The company now runs more than 160 programs linked to stablecoins for issuers and program managers.

This number is almost three times last year’s figure. In a statement on Tuesday, Visa has announced that it will share additional settlement data with blockchain lenders, which will provide lenders with a better understanding of crypto fintech companies and card issuers.

Visa plans to combine its settlement data with blockchain credit tools. That gives lenders a better look at a borrower’s performance before money changes hands. Cuy Sheffield, Visa’s head of crypto, allegedly told reporters that: “Stablecoin-linked cards are in hypergrowth mode.”

Cuy said new issuers are joining Visa every week, including stablecoin neobanks and fintech firms launching cards.

Visa opens more payment data as stablecoin card companies look for fresh capital

Visa is also setting up funding partnerships so newer issuers can borrow through smart contracts and onchain credit. Cuy said one trial already involves Credit Coop.

“We’ve been running a pilot with a company called Credit Coop that is enabling a credit facility for stablecoin-linked card providers, which we think is a positive step forward for how onchain credit can start to come into our network,” he said.

Credit Coop says it has processed $2.7 billion through the platform’s smart contracts. It further adds that there has never been any default by any of the borrowers. Visa says $700 billion in stablecoin loans have flowed via on-chain lending protocols over the last six years.

Most transactions happen within the crypto space only. Visa says its business data may provide better insights to lenders when assessing companies for financing.

The GENIUS Act changed the market last year by setting federal U.S. rules for stablecoins. Cuy described the law as a “huge” turning point. He said banks and some of the largest payment companies in the world are coming to Visa because they want to use stablecoins in existing products or build entirely new ones with the network.

Visa launched its stablecoin platform in July. It handles settlement, supports more card programs, and gives financial institutions another way to work with digital assets.

Mastercard (NYSE: MA) is also spending heavily on stablecoin infrastructure and has a platform of its own. PayPal (NASDAQ: PYPL) and Circle Internet Group (NYSE: CRCL) run stablecoin platforms as well. Visa shares are up roughly 7% this year.