Crypto
Home›Crypto›Stablecoins›Visa stablecoin settlements top a $20 billion annualiz…
Visa stablecoin settlements top a $20 billion annualized run rate
Visa said stablecoin-linked card programs more than doubled payment volume year over year in its fiscal second quarter.
Visa said its stablecoin settlement volume has surpassed a $20 billion annualized run rate, growing more than 15 times year over year as stablecoin-linked card programs expand across its payment network, according to The Block.
In Visa’s fiscal second quarter, Visa reported more than 160 stablecoin-linked card programs were live globally, and payment volume on those programs increased nearly 200% from a year earlier.
Visa said the rapid growth is creating a working-capital requirement for card issuers, which must fund daily settlement obligations before collecting payments from cardholders, and that some early-stage programs need only a few million dollars, making traditional warehouse facilities less economical.
The Block reports Visa credited Credit Coop with building a stablecoin-denominated revolving credit facility secured by settlement receivables, using daily Visa settlement files and Credit Coop’s Spigot smart contract to size funding and automate repayments, with borrowing costs for participating programs coming down by as much as 30%. Visa also said Rain has financed approximately $2 billion through the facility since August 2023, with more than 2,000 onchain borrow events, 7,000-plus repayment events, and zero defaults.