Visa Stablecoin Card Settlement Financing Reaches $2.5 Billion with Zero Defaults

Author: Visa

Compiled by Deep潮 TechFlow

Shenchao Overview: This article breaks down a financing solution that uses smart contracts for collateral control and settlement data for risk management—a rare example of how infrastructure can keep pace with business growth, particularly relevant for entrepreneurs and investors focused on the stablecoin payments space.

How Visa settlement data and on-chain credit can help new card programs solve daily settlement funding

Stablecoin-linked cards are one of the fastest-growing segments in our network. In the second quarter of fiscal year 2026, over 160 stablecoin-linked card programs were live globally, with payment volumes increasing nearly 200% year-over-year. Stablecoin settlement volumes recently surpassed an annualized run rate of $20 billion, representing more than a 15-fold increase year-over-year.

Behind this round of growth is a rarely headline-worthy prerequisite: each card program must first cover its daily settlement obligations before collecting payments from cardholders, and the operational capital to bridge this gap must come from somewhere. This is one of the most invisible factors determining whether a new project can launch—and scale.

Bridging the funding gap between network settlement and cardholder payouts is not a new challenge, and the tools to address it have long been mature. Warehouse lines and asset securitization are efficient, well-established financial structures that are highly effective for servicing large portfolios of card assets. Most of the large programs on our network are financed in this manner.

The profile of early borrowers has changed. Many stablecoin-linked card projects settle daily, including weekends and holidays, and the capital requirements for these projects are typically far below the threshold needed for warehouse financing to operate economically. A project may need only a few million dollars in its first year, with daily revolving draws and repayments, backed by receivables it has only just begun generating. At this scale, the fixed costs of traditional financing structures are hard to justify, and the performance history that lenders rely on for underwriting does not yet exist in an easily assessable form.

As a result, some early projects were more constrained by access to operating capital aligned with their day-to-day operations than by demand or network infrastructure.

Credit Coop has partnered with Visa to build a financing layer for this stage: a revolving credit facility denominated in stablecoins, specifically designed to fund daily Visa settlement obligations, with the settlement receivables themselves serving as collateral. Three components keep it running:

1. Programmatic Collateral Control

Receivables are settled through Credit Coop’s Spigot smart contract before reaching the borrower’s operating account; the Spigot automatically deducts repayments from incoming funds. This feature is familiar to any lender: it functions like a lockbox operating under a deposit account control agreement, but executed via code rather than manual transfers. Across the entire platform, this infrastructure has executed over 9,000 repayments on-chain, each as a public and verifiable transaction. Implementing this control through code is what makes such arrangements economically viable even at smaller loan sizes.

2. Insurance for Settlement Data Verification

As a registered third party and with authorization from each project, Credit Coop directly receives daily Visa settlement files from projects via secure data channels. Financing limits, disbursements, and repayments are calibrated against these records alongside on-chain repayment histories, enabling lenders to assess a project’s actual performance from two independent perspectives.

Better data typically leads to better pricing. As more lenders become familiar with the underwriting of this type of financing, borrowing costs for participating projects have decreased by up to 30%.

Since August 2023, Rain, a Visa primary member supporting a global stablecoin card program, has been financing its daily Visa settlement obligations through Credit Coop’s revolving credit facility.

The mechanism is straightforward. Rain borrows funds to complete settlements. After receiving the daily Visa settlement file, funds are transferred from Credit Coop’s credit facility to Rain, and then to Visa’s settlement address. Once cardholders repay their balances, the funds automatically flow through Rain’s smart contract to Spigot, which pays interest and replenishes the credit line, enabling continuous cycling of the credit facility.

Throughout the life of the credit instruments, all settlement obligations have been financed on time. Since 2023, the Credit Coop platform has facilitated over $2.5 billion in cumulative financing, with over 3,000 loan events and 9,000 repayment events executed on-chain, with zero defaults.

• August 2023
• Cumulative settled financing amount: approximately $2 billion
• On-chain borrowing/repayment events: 2,000+ / 7,000+
• Interest paid to date: $1.58 million and above
• Execution Mechanism: Spigot Smart Contract (Senior Claim, Programmatic Execution)
• Settlement Data: Daily Visa settlement files obtained via a secure data channel

There are more repayment events than borrowing events because Rain only needs to borrow once to settle transactions for numerous cardholders and card programs, while repayments arrive from these users in batches.

The more interesting part of the story comes next. Karta, a U.S.-issued premium Visa card for global travelers operating under Rain’s BIN, launched and scaled using Credit Coop’s credit tools while still building its performance track record. In June 2026, fueled by a 10x growth surge in 2025, Karta announced $140 million in financing: a $15 million Series A round led by Galaxy Ventures, alongside a $125 million institutional credit facility from Community Investment Management. The accumulated daily settlement history from the project became part of the foundation supporting this larger financing round.

Moto and Xplace are card projects operating under Rain's BIN and are funded on the same Credit Coop infrastructure.

Direct integration with settlement data has opened up new possibilities. Projects no longer need to draw down credit facilities in advance or hold excess funds between cycles; instead, a same-day disbursement is triggered by the daily settlement file, exactly matching the net outstanding amount, and sent directly to the Visa settlement address. This transforms the economics in three ways:

• Capital efficiency: The project pays only for the funds actually used, with usage billed by the hour rather than by the day.
• Exposure Matching: Lenders' exposure follows the daily settlement amount rather than the full credit line, allowing the same capital base to support more projects.
• Consistency: Disbursements are made each settlement day based on the settlement amount reported by Visa, including weekends and holidays.

Every new stablecoin-linked card project requires settlement operating capital from day one, and the projects most in need of funding are often those with the shortest credit histories. Through automated collateral control and services, Credit Coop makes receivables-backed financing feasible at these scales, where the fixed costs of traditional financing structures with full documentation are hard to justify. More projects gain access to funding, and more volume flows through the network.

Programmatic financing, validated by settlement data, enhances settlement reliability by replacing manual process failure modes with over 12,000 on-chain events and zero defaults.

These do not replace the institutional credit market but add to it. A project that settles daily over two years, with all obligations fulfilled on time and every withdrawal and repayment verified against on-chain data, is far easier to credit-rate than a project with a shorter history and self-reported data. This is the path Karta has taken from micro revolving credit to $125 million in institutional credit—and we expect more projects to follow this same path.

This is the opportunity that banks, issuers, and institutional lenders should pay attention to. A new asset class is being tested in an open environment, with its performance corroborated by settlement data. Institutions partnering with Visa are well-positioned to benefit as these initiatives mature.

To learn more about Visa’s stablecoin initiative and partnership opportunities, including how Visa Consulting and Analytics (VCA) can assist in evaluating and designing card programs linked to stablecoins, visit Visa.com or contact your Visa representative.

Learn more about Visa's role in stablecoins, Credit Coop, Rain, Moto, and Karta.

Case studies, comparisons, statistics, research content, and recommendations are provided "as is" solely for informational purposes and should not be used as a basis for operational, marketing, legal, technical, tax, financial, or other decisions. Visa Inc. makes no representations or warranties regarding the completeness or accuracy of the information presented and assumes no liability or obligation arising from reliance on such information. The content herein does not constitute investment or legal advice; readers should consult qualified professionals for such advice.

The data on project volume and payment growth comes from Visa’s Q2 Fiscal Year 2026 earnings conference call, April 29, 2026 (investor.visa.com). The annualized run rate for stablecoin settlement data is sourced from Visa; this figure must be confirmed with the Investor Relations department prior to publication.

Project data is provided by Credit Coop (CMBT Labs Inc.); on-chain event counts are as of August 19, 2026. The zero-default status must be immediately reconfirmed by Credit Coop prior to publication.