Stablecoin Credit Solutions
Visa stablecoin settlement surpasses $20 billion annually as network programs expand rapidly.
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Key Points
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Rain, a Visa Principal Member, has used the facility since August 2023 to finance approximately $2 billion in settlement volume, paying $1.58 million in interest with zero defaults; the activity included more than 2,000 onchain borrowing events and more than 7,000 repayment events.
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Travel-card issuer Karta launched and scaled using a Credit Coop facility, later reporting a 10-fold increase in 2025 and raising $140 million in June 2026: a $15 million Series A led by Galaxy Ventures and a $125 million institutional credit facility from Community Investment Management.
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Visa says traditional warehouse lines and securitization remain efficient for its largest card programs, but are often uneconomical for early-stage issuers that may need only a few million dollars, settle daily—including weekends and holidays—and lack an established performance history for lenders to underwrite.
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Credit Coop’s Spigot smart contract routes settlement receivables through the contract and automatically directs repayments before funds reach the borrower’s operating account; Credit Coop has recorded more than 9,000 onchain repayments across its platform.
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Visa’s proposed just-in-time settlement funding model would use each daily settlement file to trigger a same-day advance sized to the exact net amount owed, rather than requiring issuers to maintain a larger standing borrowing capacity.
Visa's stablecoin-linked card programs have hit a major milestone, with settlement volume now exceeding $20 billion at an annualized rate Crypto Briefing. The company operates more than 160 stablecoin programs globally, with payment volumes jumping nearly 200% year-over-year. But rapid growth has created a cash crunch: card issuers must fund daily settlements before collecting money from customers.
Visa and Credit Coop are solving this gap with a stablecoin-backed credit facility that uses smart contracts to automatically size loans and repay them Hoka News. The facility has financed over $2.5 billion since 2023, helping issuers cut borrowing costs by up to 30% with zero defaults. Visa is also building just-in-time lending tools for smaller, early-stage programs that traditional banks won't fund efficiently.
Stablecoin Cards Double Down on Payment Volume
Visa's stablecoin-linked payment programs are among its fastest-growing segments The Crypto Basic. The 160+ active programs worldwide have seen payment volumes surge by nearly 200% in a single year. This explosive growth marks stablecoins as a mainstream payment tool, not just a niche crypto experiment.
Rain, a Visa Principal Member, exemplifies this boom Crypto Rank. Since August 2023, Rain has used the Credit Coop facility to finance approximately $2 billion in settlement volume. The company paid just $1.58 million in interest across more than 2,000 onchain borrowing events and more than 7,000 repayments — with zero defaults.
Smart Contracts Automate Loans and Repayments
Credit Coop's Spigot smart contract solves a critical timing problem for card issuers. Settlement receivables flow through the contract automatically. Repayments are directed back before funds reach the borrower's main account Crypto Briefing. This removes human error and speeds up the lending cycle.
The automation has proven reliable at scale Hoka News. Credit Coop has processed more than 9,000 onchain repayments across its entire platform. Participating issuers have cut borrowing costs by as much as 30% compared to traditional warehouse facilities. No borrower has defaulted since the facility launched in 2023.
Karta's 10x Growth Shows New Path for Fintech Card Issuers
Karta, a travel-card issuer, scaled rapidly using Credit Coop's facility before securing major outside funding Crypto Briefing. The company grew 10-fold in 2025 alone. In June 2026, Karta raised $140 million: a $15 million Series A led by Galaxy Ventures plus a $125 million institutional credit facility from Community Investment Management.
Karta's trajectory shows how onchain lending fills a gap. Traditional warehouse lines and securitization work well for Visa's largest card programs CNBC. But they are too expensive for early-stage issuers needing just a few million dollars. These young programs settle daily—including weekends—and lack performance history for traditional lenders to evaluate.
Just-in-Time Funding Could Reshape Card Issuer Economics
Visa is proposing a just-in-time settlement funding model to push efficiency even further CNBC. Instead of requiring issuers to maintain standing credit lines, advances would be sized to the exact net amount owed each day. The funding would trigger automatically from each daily settlement file.
This approach could unlock capital for dozens of smaller programs currently locked out of traditional lending Hoka News. By eliminating the need for a large borrowing cushion, issuers shrink their interest costs and simplify cash management. Visa sees onchain and just-in-time lending as critical infrastructure for the next wave of stablecoin-based payments at scale.
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