Visa: Stablecoin Settlements Reach $20 Billion

The annualized rate of Visa's stablecoin settlements now exceeds $20 billion, a significant increase from $3.5 billion just ten months ago. In partnership with Credit Coop, Visa has introduced a revolving credit line in stablecoin, reducing borrowing costs by up to 30%. Over 160 stablecoin-linked card programs were active in Visa's fiscal second quarter, with payment volume up nearly 200% year-on-year. Card issuers must fund their daily settlement obligations before cashing out payments, which poses challenges for startup programs. Visa's revolving credit line, backed by settlement receivables, utilizes daily settlement files and a smart contract, Spigot, to automate financing and repayments. Rain, a principal member of Visa, has financed approximately $2 billion through this mechanism, while Credit Coop has funded over $2.5 billion since 2023. Competition is intensifying with Stripe, Visa, and Mastercard preparing an offensive in on-chain payments.

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