Visa onchain lending makes card settlement collateral

Visa onchain lending uses private settlement data and smart contracts to fund card programs, but loss terms remain undisclosed.

• Visa is leveraging onchain lending, utilizing private settlement data and smart contracts via Credit Coop, to fund daily stablecoin-card obligations.
• This initiative has financed $2.5 billion since 2023, with smart contracts managing repayment, though specific loss terms remain undisclosed.
• The model acts as a bridge into private credit, using settlement receivables as collateral and enhancing Visa's market position by providing crucial underwriting data.

Topics: Institutional adoption, Integration with defi, Payment system integration, Banking depository pilots, Rwa collateral lending, Payment network integration

Tags: #visa #onchainlending #creditcoop #stablecoin #cardsettlement #smartcontracts #receivablesfinance #revolvingfacility #creditrisk #rain

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