Visa said more than 160 stablecoin-linked card programmes were live on its network in the fiscal second quarter, with payment volume up nearly 200% year over year. Stablecoin-linked card programmes are creating a working-capital problem as they grow: operators must fund Visa settlement before cardholder payments arrive. Credit Coop’s onchain credit infrastructure has financed more than $2.5 billion in cumulative settlement volume since 2023, using Visa settlement data and repayment records to support revolving credit lines. Settlement Files Support Lending Decisions The issue is timing. Card programmes often have to meet daily settlement obligations before they collect funds from cardholders. For newer stablecoin-linked programmes, those facilities may be too small or too frequently used for traditional warehouse financing to work efficiently. Credit Coop lends against the programme’s settlement receivables. With the programme’s authorisation, it receives daily Visa settlement files through a secure data connection and reviews them alongside the borrower’s on-chain transaction and repayment history. Those records help size the facility, support disbursement decisions and verify repayments. Visa settlement data is part of the process, but Visa does not make the credit decision or take the lender’s exposure. Repayment is handled through Credit Coop’s Spigot smart contract. Settlement receivables pass through the contract before reaching the borrower’s operating account. The contract then directs an agreed portion of incoming funds towards interest and principal, while releasing the remaining balance to the operator. The arrangement resembles a lockbox used in conventional receivables financing. The difference is that smart-contract infrastructure handles collection and repayment automatically, rather than through manual account sweeps.Rain Shows the Model in Use According to figures cited by Visa and provided by Credit Coop, the infrastructure has supported more than $2.5 billion in cumulative financed volume since 2023. It has processed over 3,000 borrowing events and 9,000 repayments onchain, with no reported defaults across participating facilities. That total does not match the amount currently outstanding. It represents historical settlement volume financed through repeatedly used credit lines. Rain, a Visa Principal Member focused on stablecoin-linked card programmes, has used the structure to fund daily Visa settlement obligations since August 2023. Rain has financed about $2 billion of settlement volume through more than 2,000 borrowing events and 7,000 repayments. When Rain draws against the facility, funds move from Credit Coop to Rain and then to the Visa settlement address. As cardholders pay, proceeds flow through Rain’s smart contracts to the Spigot, which services interest and replenishes the credit line. Visa described a possible next phase in which each daily settlement file triggers a same-day disbursement for the exact net amount owed. In that version, the settlement file would no longer only support underwriting. It would also determine how much lender capital is deployed each day.This article was written by Tanya Chepkova at www.financemagnates.com.