Key Insights:
- Visa’s network of over 160 card programs has placed stablecoin updates in the spotlight after volume surged nearly 200% year-over-year.
- Financing via Credit Coop lowered borrowing expenses by as much as 30% for select Visa initiatives.
- Rain has utilized over $2 billion in settlement financing spread across more than 2,000 borrowing transactions.
Visa is generating industry attention regarding stablecoins, highlighting expansion across its stablecoin-powered card network. During the fiscal second quarter, more than 160 active programs were operating worldwide.
Transaction volume across these offerings climbed by roughly 200% compared to the previous year. This rapid expansion is prompting Visa to evaluate how fast-growing issuers manage day-to-day settlement liquidity.
As additional programs roll out, operators must hold sufficient capital to satisfy Visa settlement requirements. Smaller entities may need millions of dollars, yet standard financial facilities often entail high administrative burdens.
To address this, Visa is combining settlement records with onchain lending frameworks. The objective is to provide lenders with enhanced transparency while issuers look for operational capital.
Visa Stablecoin News Shifts Toward Onchain Credit
Visa is currently testing this strategy via a pilot program alongside Credit Coop. The firm offers revolving lines of credit denominated in stablecoins and backed by settlement receivables. Issuers draw capital to fulfill daily Visa requirements, repaying the funds as cardholder payments are collected, which marks another development highlighted in recent coverage.
This mechanism connects growing cryptocurrency transaction volumes with the capital required to keep settlements flowing smoothly. Credit Coop deploys its Spigot smart contract to route these repayments. Incoming receivables first cover the principal and interest before any leftover funds reach the borrower.
Additionally, Visa transmits authorized programs’ daily settlement documents through a secure channel. Lenders can subsequently cross-reference these files with onchain transaction histories when evaluating risk.
According to Visa, settlement metrics decreased borrowing expenses by as much as 30% for certain programs. Nonetheless, the company refrained from disclosing specific interest rates or naming every borrower benefiting from reduced costs. Consequently, this financing structure bridges Visa’s operational data with the immediate capital demands of participating card programs.
Rain Shows How the Financing Model Works
Rain offers the most transparent operational case study within the latest Visa announcements. The stablecoin card infrastructure provider has leveraged Credit Coop financing since August 2023.
Credit Coop distributes funds based on Visa settlement documentation, allowing Rain to meet its daily obligations. Payments made by cardholders subsequently flow through smart contracts that handle interest charges and replenish the credit line.
Visa noted that every settlement obligation supported by Rain’s facility has been funded punctually. Credit Coop recorded upwards of $2.5 billion in total financing spanning more than 3,000 borrowing instances. Rain was responsible for approximately $2 billion of that aggregate amount, encompassing over 2,000 borrowing events alongside 7,000 repayments.
Data from Visa indicates that these transactions yielded a minimum of $1.58 million in interest. Furthermore, consistent with current reporting, Rain settles its Visa obligations using USDC on a seven-day-a-week basis. This framework illustrates how recurring settlement demands can interface with stablecoin-backed credit.
Karta subsequently adopted a comparable financial path utilizing Rain’s issuance infrastructure, revealing $140 million in funding in June 2026. That package comprised a $15 million Series A round and a $125 million institutional credit line. Additional participants Moto and Xplace also utilize Credit Coop financing, though Visa withheld their specific terms.
Stablecoin News Turns Toward Just-in-Time Funding
Discussions around stablecoins are transitioning away from standard revolving facilities and moving toward more precise, daily funding models. Visa and Credit Coop are currently engineering a just-in-time structure anchored directly to settlement files.
Each individual file would trigger a stablecoin transfer matching the precise net liability. The capital would then transfer straight to the designated Visa settlement destination.
Visa stated that this framework could shorten borrowing timeframes from days down to hours. It may also prevent the need for full credit facility draws before precise daily requirements are calculated. Even so, Visa has not provided a release schedule for the network of 160 programs, nor has it specified which stablecoins or blockchain networks future facilities will support.
FAQ
How much did Visa card volume grow?
Payment volume across Visa’s stablecoin-linked card programs rose by nearly 200% year-over-year.
What role does Credit Coop play?
Credit Coop provides stablecoin-denominated revolving credit facilities secured by settlement receivables to help issuers meet daily obligations.
How much financing has Rain used?
Rain accounts for about $2 billion of Credit Coop’s financing total, spanning more than 2,000 borrowing events.
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What currency does Rain use for Visa settlements?
Rain settles its Visa obligations in USDC seven days a week.
