Visa and Credit Coop have built an onchain lending model that has financed over $2.5 billion in cumulative settlement volume since 2023, processing more than 3,000 borrowing events and 9,000 repayment events, all with zero defaults. The system relies on Credit Coop’s Spigot smart contract, which functions as a programmable lockbox automating repayment routing and collateral securing directly from settlement receivables. Borrowing costs for participating programs have dropped by up to 30%, thanks to onchain data transparency and operational efficiency. Visa’s network now hosts over 160 live stablecoin-linked card programs, with annualized stablecoin settlement volumes reaching $20 billion, representing an increase of more than 15 times compared to the previous year.
Source: Read the original article
