Card payment networks face a recurring funding challenge: settlement obligations to Visa may come due before payments arrive from cardholders, creating a short-term financing gap.
Visa announced an onchain lending initiative in September to address this gap through Credit Coop, an onchain credit protocol that provides revolving stablecoin facilities for settlement financing. The model uses smart contracts to manage draws, cash flows and repayment while keeping authorized Visa settlement files central to underwriting and facility sizing.
Growing Stablecoin Card Activity
Visa reported more than 160 stablecoin-linked card programs in fiscal Q2 2026, with payment volume on those programs up nearly 200% year-over-year. Stablecoin settlement exceeded a $20 billion annualized run rate, more than 15 times the prior-year pace.
Participating programs draw from stablecoin-denominated revolving facilities to meet settlement obligations. Funds move to Visa's settlement address, then cardholder proceeds flow through Credit Coop's Spigot contract—a programmable system that services interest and replenishes the credit line before remaining funds reach the borrower.
Track Record and Scale
Visa said the Credit Coop model had financed more than $2.5 billion of cumulative settlement volume since 2023, with zero defaults. The company also reported that greater lender participation had reduced borrowing costs for participating programs by as much as 30%.
Rain, a payments company and Visa principal member, accounts for most disclosed activity. Rain has used a Credit Coop facility since August 2023 and had financed approximately $2 billion of cumulative settlement volume through more than 2,000 borrow events and 7,000 repayments as of mid-August 2026.
Karta, a card company, used Credit Coop financing in its early stages before securing a $15 million Series A and a $125 million credit facility from Community Investment Management.
Structure and Risk Considerations
The facility uses Visa's settlement data alongside onchain transaction records for underwriting and sizing decisions. Public blockchain data documents token movements and contract execution, while Visa's settlement files connect those movements to specific obligations and operating performance.
Credit Coop's documentation identifies dependencies around facility administration, including powers assigned to an arbiter and Spigot owner. Public disclosures do not detail complete lender identities, loss waterfalls, borrower equity contributions, guarantees, or the full scope of lender claims if receivables fall short.
The model represents a secured claim on payment flows serviced at blockchain speed and informed by Visa's private records, though specific legal protections remain undisclosed.
