Visa Launches Working Capital Program for Stablecoin Card

Visa is launching a program to provide working capital financing for stablecoin-linked card programs and FinTech companies. The initiative combines settlement data from Visa's payment network with on-chain credit infrastructure to help lenders evaluate opportunities and extend capital.

According to a company release, the payment volume of stablecoin-linked card programs on Visa's network has grown nearly 200% year over year. Visa's own annualized stablecoin settlement volume has increased more than 15 times in the same period, surpassing $20 billion.

How the Program Works

The program aims to solve a common problem for payment companies. These firms often have collateral in the form of settlement receivables but lack a way to demonstrate the real-time performance of this collateral to potential lenders. Visa's new system merges its VisaNet settlement data with on-chain transaction records. This combination allows for live performance evaluation and supports automated settlement financing.

Credit Coop, a company providing working capital for stablecoin card programs, is a partner in this effort. "By combining Visa settlement data with onchain infrastructure, we can evaluate live performance, enforce repayment from the settlement flow and extend capital onchain from participating lenders as a program grows," said Credit Coop Founder and CEO Chris Walker in the release.

Visa's Broader Stablecoin Strategy

This working capital program builds on Visa's expanding stablecoin infrastructure. It follows the July launch of the Visa Stablecoin Platform, which is currently in a beta phase with select clients. That platform offers financial institutions, FinTechs, and crypto companies a managed environment for minting, redeeming, holding, and transferring stablecoins.

Earlier in the year, Visa added five more blockchains to its global stablecoin settlement pilot. This move brought the total number of supported blockchains to nine. The company is systematically expanding its capacity to handle digital money.

A Shift in Financial Infrastructure

Visa executives frame the move as part of a larger evolution in financial services. Rubail Birwadker, Visa's global head of growth products and partnerships, stated that stablecoins are creating opportunities to rethink financial infrastructure. "We're seeing how trusted payment data and onchain technologies can work together to unlock new forms of liquidity, helping businesses access capital in ways that are more transparent, programmable and aligned to the speed of modern commerce," Birwadker said in the release.

He added that Visa intends to apply its long-standing principles of security, reliability, and accessibility to new forms of digital money. The company sees this as its role in the next generation of financial services. The program directly targets the liquidity needs of emerging payment companies handling the intersection of traditional finance and blockchain-based systems.