Visa Positions Itself for the Next Wave of Stablecoin Payments

Visa Inc. (NYSE:V) is expanding its data offering to blockchain-based lenders as demand for stablecoin-linked cards accelerates. Visa said it is combining its VisaNet settlement data with onchain lending infrastructure to help stablecoin card programs and fintechs obtain working capital more efficiently. The company currently has more than 160 stablecoin-linked card programs, with payment volume on those programs up nearly 200% year over year, while stablecoin settlement volume has surpassed a $20 billion annualized run rate, more than 15 times the level a year earlier.

The initiative addresses a practical constraint for fast-growing stablecoin card issuers: they need capital to fund daily settlement obligations before collecting money from cardholders. Visa Inc.’s model gives blockchain lenders access to settlement-performance data, potentially allowing them to assess credit risk and provide financing faster. Visa has already been piloting the approach with Credit Coop, with more than $2.5 billion in cumulative financed settlement volume since 2023 across participating facilities and no reported defaults.

Stablecoins Could Become a New Growth Engine

The biggest bullish takeaway is that Visa Inc. is positioning itself to capture more payment activity without having to replace its existing card network. The rapid expansion of stablecoin-linked cards suggests that crypto-native payment products are increasingly using Visa’s infrastructure to reach traditional merchants. With more than 160 programs already live and payment volume growing nearly 200% year over year, continued adoption could create an incremental source of transaction volume for Visa.

Visa is also going beyond simply allowing stablecoins to run over its network. By connecting VisaNet settlement data with onchain lending, the company is helping solve the financing problem that could otherwise slow the growth of these programs. If easier access to working capital allows smaller fintechs and stablecoin issuers to launch and scale cards faster, Visa could benefit from a network-effect cycle: more issuers → more cards → more transactions → more settlement volume. Its broader partnership with Bridge, which is targeting expansion of stablecoin-linked Visa cards to more than 100 countries, further supports the potential for global adoption.

There is also a strategic benefit. Stablecoins could represent a significant evolution in payments, and Visa appears to be positioning itself as an infrastructure layer between traditional commerce and blockchain finance rather than treating crypto as a threat. Reuters notes that recent U.S. regulation has provided greater legitimacy and clarity for payment stablecoins, although important regulatory questions remain. If stablecoins become increasingly mainstream, Visa’s early investment in the ecosystem could strengthen its long-term competitive position.

Fast Growth Does Not Guarantee Big Financial Impact

The main concern is that rapid stablecoin growth does not automatically translate into proportional revenue or earnings growth for Visa Inc.. A $20 billion annualized stablecoin settlement run rate sounds substantial, but it remains relatively small compared with Visa’s enormous traditional payments business. Moreover, stablecoin transactions can potentially put pressure on traditional payment economics as fintechs and blockchain companies seek cheaper or more direct ways to move money.

Visa also risks becoming increasingly dependent on a rapidly evolving crypto ecosystem. Stablecoin issuers, blockchain lenders and fintech card programs face regulatory, credit and operational risks that Visa does not fully control. Reuters reports that U.S. lawmakers are still debating broader crypto legislation, with concerns from parts of the banking industry about competition with traditional deposits and financial stability. A change in regulation, weaker stablecoin adoption, or problems at major crypto participants could slow the growth Visa is currently positioning itself to capture.

Finally, Visa Inc.’s new data-sharing model could introduce credit, privacy and reputational risks. Giving lenders greater visibility into settlement performance can make financing more efficient, but Visa must ensure that data is used appropriately and that problems at participating lenders or card programs do not damage confidence in its network. The company’s pilot results are encouraging, but the broader model has yet to prove that it can scale across a much larger and more diverse group of blockchain lenders.

Conclusion

Overall, the news is moderately bullish for Visa Inc.. The strongest positive is not the immediate size of stablecoin payments, but Visa’s attempt to build infrastructure around the entire ecosystem—from card issuance and settlement to working-capital financing. The nearly 200% growth in stablecoin-linked card payment volume shows that the opportunity is developing quickly, while regulatory progress could further accelerate adoption.

However, investors should avoid treating the current growth rates as a guarantee of a major earnings contribution. Stablecoin payments are still a relatively small part of Visa’s overall business, and regulatory, competitive, and credit risks remain. The bull thesis is that Visa can turn stablecoins from a potential disruption into another high-growth channel running through its network; the bear thesis is that the market grows rapidly but ultimately produces limited economics for Visa while exposing it to additional risks.

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This article is originally published at Insider Monkey.