Visa Launches On-Chain Lending Program for Stablecoin Card Issuers

Visa has introduced an on-chain lending program, Credit Coop, to address settlement timing gaps for stablecoin-linked credit card projects. The system uses smart contracts to provide revolving credit lines, allowing issuers to meet daily settlement obligations to Visa before receiving repayments from cardholders. As of August 19, 2026, the program has facilitated over $2.5 billion in cumulative settlement financing with no reported defaults. While Visa reports that the model has reduced borrowing costs by up to 30%, the company notes that data is self-reported by Credit Coop, and specific risk metrics such as current outstanding principal and lender concentration remain undisclosed.