Stablecoin-linked cards are one of the fastest-growing parts of our network. In our fiscal second quarter, more than 160 stablecoin-linked card programs were live around the world, payment volume on those programs grew nearly 200% year over year, and stablecoin settlement volume recently surpassed a $20 billion annualized run rate, up more than 15x year over year.¹

Behind that growth sits a requirement that rarely makes headlines. Every card program has to fund its daily settlement obligation before it collects from cardholders, and the working capital to bridge that gap has to come from somewhere. It is one of the least visible determinants of whether a new program can launch and grow.

Why settlement funding is a different problem

Funding the gap between network settlement and cardholder collection is not a new challenge, and the instruments that solve it are well established. Warehouse lines and securitization are efficient, well-understood structures, and they serve card portfolios at scale very effectively. Most of the largest programs on our network are financed exactly this way.

What has changed is the profile of the borrower at the earliest stage. Many stablecoin-linked programs settle every day of the week, including weekends and holidays, and they often need capital well below the size at which warehouse economics typically work. A program in its first year might need a few million dollars, drawn and repaid on a daily cycle, secured against receivables it has only recently begun to generate. The fixed costs of documenting a traditional facility are hard to justify at that size, and the performance history a lender would want to underwrite against does not yet exist in a form that is easy to assess.

The result is that some early-stage programs are constrained less by demand or by network infrastructure than by access to working capital structured for how they operate day to day.

A credit facility built around settlement

Credit Coop, working with Visa, built a financing layer aimed squarely at that stage: a stablecoin-denominated revolving credit facility that funds daily Visa settlement obligations and is secured by the settlement receivables themselves. Three components make it work:

1. Programmatic collateral control

Settlement receivables flow through Credit Coop's Spigot smart contract before reaching the borrower's operating account, and the Spigot routes repayment automatically from incoming proceeds. The function will be familiar to any lender: it mirrors a lockbox operating under a deposit account control agreement (DACA), enforced programmatically rather than through manual sweeps. Across the platform, this infrastructure has executed more than 9,000 repayments onchain, each a public, verifiable transaction. Executing that control in code is what makes the arrangement economical at smaller facility sizes.

2. Settlement-data-verified underwriting

As a registered Third Party, and with each program's authorization, Credit Coop receives the program's daily Visa settlement files directly through a secure data pipeline. Facility sizing, disbursements and repayment verification are calibrated against those records alongside the onchain repayment history, which gives lenders two independent views of how a program is actually performing.

Better data tends to produce better pricing. As more lenders have grown comfortable underwriting these facilities, borrowing costs for participating programs have come down by as much as 30%.

Proof at scale

Since August 2023, Rain, a Visa Principal Member that powers stablecoin card programs around the world, has funded its daily Visa settlement obligations through a Credit Coop revolving facility.

The mechanics are straightforward. Rain draws to fund settlement. Upon receipt of the daily Visa settlement file, funds transfer from the Credit Coop facility to Rain, then to the Visa settlement address. As cardholders pay, proceeds flow automatically through Rain's smart contracts to the Spigot, which services interest and replenishes the line so the credit facility revolves continuously.

Every settlement obligation over the life of the facility has been funded on time. Across its platform, Credit Coop has financed more than $2.5 billion in cumulative volume since 2023, with over 3,000 borrow events and 9,000 repayment events executed onchain and zero defaults.²

Rain onchain track record

Repayment events exceed borrow events because Rain draws once to cover settlement across many cardholders and card programs, while repayments arrive in batches from those users. 

The more interesting part of the story is what happens next. Karta, a U.S.-issued premium Visa credit card for global travelers operating under Rain's BIN, launched and scaled on a Credit Coop facility at a point when its performance record was still being built. In June 2026, on the strength of 10x growth in 2025, Karta announced a $140 million raise: a $15 million Series A led by Galaxy Ventures and a $125 million institutional credit facility from Community Investment Management. The daily settlement history the program accumulated became part of the record that supported the larger facility.

Moto and Xplace, both card programs under Rain's BIN, are financed on the same Credit Coop infrastructure.

The next phase: just-in-time settlement funding 

Direct settlement data integration opens up something new. Rather than drawing a facility in advance and holding idle capital between cycles, a program's daily settlement file can trigger a same-day disbursement for exactly the net amount owed, sent to the Visa settlement address. That changes the economics in three ways:

• Capital efficiency: programs pay for capital only while it is deployed, and the window is hours rather than days.

• Right-sized exposure: lender exposure tracks daily settlement amounts rather than full facility size, so the same capital base can support more programs.

• Consistency: disbursements execute against Visa-reported settlement amounts on every settlement day, weekends and holidays included.

Why this matters for the ecosystem

Every new stablecoin-linked card program needs settlement working capital from day one, and the ones that need it most are usually the ones with the least credit history. By automating collateral control and servicing, Credit Coop makes receivables-backed financing workable at facility sizes where the fixed costs of a fully documented structure are difficult to justify. More programs get funded, and more volume flows across the network.

Programmatic, settlement-data-verified funding also strengthens settlement reliability, replacing the failure modes of manual processes with more than 12,000 onchain events and zero defaults.

None of this displaces the institutional credit market. It adds to it. A program that has settled daily for two years, with every obligation funded on time and every draw and repayment reconciled against network data, is a materially easier credit to assess than one with a short history and self-reported figures. That is the path Karta took from a small revolving facility to a $125 million institutional one, and we expect more programs to follow it.

For banks, issuers and institutional lenders, that is the opportunity worth watching. A new asset class is being seasoned in public, with performance reconciled against settlement data, and those partnering with Visa could be well positioned to meet these programs as they mature.

For more information on stablecoin initiatives and partnership opportunities at Visa, including how Visa Consulting and Analytics (VCA) can help evaluate and design stablecoin-linked card programs, visit Visa.com or contact your Visa representative.

Learn more about the role Visa plays in stablecoins, Credit Coop, Rain, Moto, and Karta.

Case studies, comparisons, statistics, research and recommendations are provided "AS IS" and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. Visa Inc. neither makes any warranty or representation as to the completeness or accuracy of the information presented, nor assumes any liability or responsibility that may result from reliance on such information. The information contained herein is not intended as investment or legal advice, and readers are encouraged to seek the advice of a competent professional where such advice is required.