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Visa Is Turning Stablecoin Growth Into a Financing Opportunity
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Key Takeaways
Visa is launching an onchain credit framework to connect payment streams with blockchain-based capital.
Visa's stablecoin-linked card programs exceed 160, with payment volume up nearly 200% year over year.
Since 2023, Visa's platform has financed more than $2.5 billion in volume with zero defaults.
Visa Inc. (V - Free Report) is launching an onchain credit framework that connects traditional payment streams with blockchain-based capital. By pairing VisaNet transaction data with smart contracts, Visa enables fintech partners and stablecoin card issuers to access onchain working capital. The goal is to bring onchain lending into everyday commercial activity, offering fast-growing payment businesses a programmatic, transparent way to finance daily operations.
More than 160 stablecoin-linked card programs now operate on Visa’s network, with payment volume rising nearly 200% year over year. Stablecoin settlement volume has reached a $20 billion annualized run rate, up more than 15X year over year. Meanwhile, more than $694 billion in stablecoin-denominated loans have moved through onchain lending protocols since 2020, highlighting the scale of capital already flowing through this market.
Securing working capital remains a hurdle for emerging fintechs. Card programs require continuous liquidity to meet daily settlement obligations, yet traditional lenders demand extensive operating histories and manual underwriting. Visa’s model, developed with Credit Coop, addresses this by using settlement receivables as collateral, while smart contracts automate financing and repayments. Since 2023, the platform has supported more than $2.5 billion in cumulative financed volume with zero defaults.
The initiative is about strengthening Visa’s long-term payments ecosystem rather than generating immediate revenues. More financing options help stablecoin card programs expand, steadily increasing transaction volume across VisaNet. By turning proprietary settlement feeds into an underwriting moat, Visa protects its network and ensures emerging fintech volume stays connected to its rails.
How Are Competitors Faring?
Visa’s key peers, Mastercard Incorporated (MA - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) , are also expanding their stablecoin and blockchain-based payment capabilities.
Mastercard expanded settlement capabilities to support regulated stablecoins like USDC and PYUSD for intraday, weekend and holiday settlement. By enabling stablecoin settlement across blockchain rails, MA gives issuers and acquirers greater flexibility in managing liquidity.
PayPal is expanding the use of its PYUSD stablecoin in commerce, allowing U.S. merchants to accept cryptocurrency while receiving settlement in local currency. PYPL’s crypto checkout can reach more than 650 million pro-crypto consumers globally, supporting broader adoption of stablecoins for everyday payments.
Visa’s Price Performance, Valuation & Estimates
Visa’s shares have risen 5.2% year to date against the industry’s 9.2% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, V trades at a forward price-to-earnings ratio of 24.79, well above the industry average of 17.72. V carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Visa’s fiscal 2026 earnings implies a 14.7% jump from the year-ago period’s level.
View the Zacks #1 Rank List
Image: Bigstock
Visa Is Turning Stablecoin Growth Into a Financing Opportunity
Key Takeaways
Visa Inc. (V - Free Report) is launching an onchain credit framework that connects traditional payment streams with blockchain-based capital. By pairing VisaNet transaction data with smart contracts, Visa enables fintech partners and stablecoin card issuers to access onchain working capital. The goal is to bring onchain lending into everyday commercial activity, offering fast-growing payment businesses a programmatic, transparent way to finance daily operations.
More than 160 stablecoin-linked card programs now operate on Visa’s network, with payment volume rising nearly 200% year over year. Stablecoin settlement volume has reached a $20 billion annualized run rate, up more than 15X year over year. Meanwhile, more than $694 billion in stablecoin-denominated loans have moved through onchain lending protocols since 2020, highlighting the scale of capital already flowing through this market.
Securing working capital remains a hurdle for emerging fintechs. Card programs require continuous liquidity to meet daily settlement obligations, yet traditional lenders demand extensive operating histories and manual underwriting. Visa’s model, developed with Credit Coop, addresses this by using settlement receivables as collateral, while smart contracts automate financing and repayments. Since 2023, the platform has supported more than $2.5 billion in cumulative financed volume with zero defaults.
The initiative is about strengthening Visa’s long-term payments ecosystem rather than generating immediate revenues. More financing options help stablecoin card programs expand, steadily increasing transaction volume across VisaNet. By turning proprietary settlement feeds into an underwriting moat, Visa protects its network and ensures emerging fintech volume stays connected to its rails.
How Are Competitors Faring?
Visa’s key peers, Mastercard Incorporated (MA - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) , are also expanding their stablecoin and blockchain-based payment capabilities.
Mastercard expanded settlement capabilities to support regulated stablecoins like USDC and PYUSD for intraday, weekend and holiday settlement. By enabling stablecoin settlement across blockchain rails, MA gives issuers and acquirers greater flexibility in managing liquidity.
PayPal is expanding the use of its PYUSD stablecoin in commerce, allowing U.S. merchants to accept cryptocurrency while receiving settlement in local currency. PYPL’s crypto checkout can reach more than 650 million pro-crypto consumers globally, supporting broader adoption of stablecoins for everyday payments.
Visa’s Price Performance, Valuation & Estimates
Visa’s shares have risen 5.2% year to date against the industry’s 9.2% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, V trades at a forward price-to-earnings ratio of 24.79, well above the industry average of 17.72. V carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Visa’s fiscal 2026 earnings implies a 14.7% jump from the year-ago period’s level.
Image Source: Zacks Investment Research
Visa stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.