Visa has implemented an onchain lending model in partnership with Credit Coop, which has facilitated over $2.5 billion in settlement volume since August 2023. The system has processed more than 3,000 borrowing events and 9,000 repayment events with zero defaults recorded to date.
The infrastructure utilizes the Spigot smart contract to automate lending for fintech card programs. This tool functions as a programmable lockbox that secures collateral and routes repayments directly from settlement receivables, removing the need for manual intervention.
Participating programs have seen borrowing costs decrease by up to 30% due to increased lender participation and improved operational efficiency. Rain, a Visa Principal Member, serves as the primary user of the facility, accounting for approximately $2 billion of the total volume.
Visa currently supports over 160 live stablecoin-linked card programs globally. The annualized run rate for stablecoin settlements on the network has reached $20 billion, marking a 15-fold increase over the previous year, while total payment volumes grew by nearly 200% year-over-year.
