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Market News

Visa’s Stablecoin Card Volume Surges 200% as Settlement Tops $20B

The company details a Credit Coop facility that funds daily settlement obligations and is repaid automatically by smart contract.

Written By Dhara Chavda
Edited by Divya Mistry
Published 45 minutes ago·Updated 22 minutes ago
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Visa reports stablecoin card volume up 200% YoY, with settlement volume exceeding a $20 billion annualized run rate.
Credit Coop’s revolving facility has financed over $2.5 billion since 2023, supporting more than 3,000 borrowing events with zero defaults.
Early-stage programs face working‑capital constraints, prompting Visa to offer daily settlement financing that cuts borrowing costs up to 30%.

Visa says more than 160 stablecoin-linked card programs were live worldwide in its fiscal second quarter, with payment volume on those programs up nearly 200% year over year.

The company also says stablecoin settlement volume passed a $20 billion annualized run rate, more than 15 times the level a year earlier. Behind that growth, it argues, sits a constraint that rarely gets discussed: every card program must fund its daily settlement obligation before collecting from cardholders.

Visa set out the financing structure in a thought-leadership post, describing a stablecoin-denominated revolving credit facility built with Credit Coop that funds daily settlement and is secured by the settlement receivables themselves.

The Working Capital Problem

The gap between network settlement and cardholder collection is an old problem with established solutions. Warehouse lines and securitization serve large card portfolios efficiently, and Visa says most of the biggest programs on its network are financed that way.

What has changed is the borrower profile at the earliest stage. Many stablecoin-linked programs settle every day, including weekends and holidays, and often need capital well below the size at which warehouse economics work—a first-year program might need a few million dollars, drawn and repaid daily, secured against receivables it has only just begun generating.

The fixed costs of documenting a traditional facility are difficult to justify at that size, and the performance history a lender would underwrite against does not yet exist in an assessable form. Visa’s argument is that some early-stage programs are constrained less by demand or infrastructure than by access to working capital structured for how they actually operate.

How the Facility Works

Two components carry the structure. Settlement receivables pass through Credit Coop’s Spigot smart contract before reaching the borrower’s operating account, and the contract routes repayment automatically from incoming proceeds. Visa compares the function to a lockbox operating under a deposit account control agreement, enforced in code rather than through manual sweeps.

The second is underwriting against settlement data. Credit Coop is a registered Third Party and, with each program’s authorization, receives daily Visa settlement files through a secure pipeline. Facility sizing, disbursements, and repayment verification are calibrated against those records alongside the on-chain repayment history.

Visa says borrowing costs for participating programs have fallen by as much as 30% as more lenders have grown comfortable with the structure. It does not disclose the baseline those savings are measured against or the rates programs pay.

The Rain Track Record

Rain, a Visa Principal Member that powers stablecoin card programs internationally, has funded its daily Visa settlement obligations through a Credit Coop revolving facility since August 2023.

The mechanics run in sequence. Rain draws to fund settlement; funds move from the facility to Rain and then to the Visa settlement address on receipt of the daily settlement file, and cardholder payments flow back automatically through Rain’s smart contracts to the Spigot, which services interest and replenishes the line.

Visa puts cumulative settlement volume financed for Rain at approximately $2 billion, with more than 2,000 borrow events, over 7,000 repayment events, $1.58 million or more in interest paid, and no defaults. Repayments exceed borrows because Rain draws once to cover settlement across many cardholders and programs, while repayments arrive in batches.

Across its whole platform, Credit Coop is said to have financed more than $2.5 billion since 2023, with over 3,000 borrow events, 9,000 repayment events, and zero defaults. Those figures are Visa’s and Credit Coop’s own, and The Crypto Times has not independently verified them.

What Credit History Buys

The example Visa points to is Karta, a US-issued premium Visa credit card for travellers operating under Rain’s BIN, which launched and scaled on a Credit Coop facility while its performance record was still being built.

In June 2026, following what Visa describes as tenfold growth during 2025, Karta announced a $140 million raise—a $15 million Series A led by Galaxy Ventures alongside a $125 million institutional credit facility from Community Investment Management. Visa’s argument is that the daily settlement history accumulated on the smaller facility formed part of the record supporting the larger one. Moto and Xplace, also under Rain’s BIN, run on the same infrastructure.

The company says the next step is just-in-time funding, where a daily settlement file triggers a same-day disbursement for the exact net amount owed, sent directly to the Visa settlement address, rather than a program drawing in advance and holding idle capital between cycles.

Against the Trend Line

The disclosed figures sit well above Visa’s earlier ones. The Crypto Times reported in December 2025 that the company had more than 130 stablecoin-linked programs across over 40 countries and a $3.5 billion annualized settlement run rate as of November 2025.

Visa has been expanding the category on several fronts, including taking stablecoin-linked cards with Bridge into more than 100 countries in March and agreeing to test stablecoin issuance and card settlement with Shinhan Financial Group in South Korea in August.

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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