Executive summary

Visa reported more than 160 stablecoin-linked card programs globally in Q2 FY2026, with payment volume up nearly 200% year over year, and stablecoin settlement volume has recently surpassed a $20 billion annualized run rate, up more than 15x year over year. As these card programs scale, they face a common challenge: funding transactions through the Visa settlement system before funds are received.

Traditional financing was not designed for digital-native, 24/7 card programs. Bank credit lines can take months to negotiate, often require blanket liens on corporate assets and rely on manual daily funding draws constrained by banking hours, with no settlement capability from Friday afternoon through Monday morning. Securitization is typically reserved for large-scale programs with hundreds of millions in receivables and significant legal costs. As a result, new programs are constrained not by demand or network infrastructure, but by access to appropriately structured working capital.

Working with Visa, Credit Coop built the financing layer specifically for stablecoin-linked card issuers. The solution automatically funds Visa settlement obligations through a stablecoin-denominated revolving credit facility secured only by the settlement receivables, and verified against daily Visa settlement data, with an onchain record.

Credit Coop program stats:

• $2.5B+ cumulative volume financed since 2023, zero defaults
• 3,000+ borrow events and 9,000+ repayment events executed programmatically onchain, every draw and repayment a verifiable public transaction
• Three years of continuous operation with Rain, a Visa Principal Member focused on stablecoin-linked card partnerships
• A graduation track record: Karta, launched on this infrastructure, announced a $140M raise in June 2026, including a $125M institutional credit facility, after scaling on Credit Coop financing

For Visa, the model means settlement obligations funded automatically, on time, seven days a week, and a repeatable financing template that helps the next hundred stablecoin-linked card programs launch and scale on VisaNet.

The Credit Coop model

Credit Coop provides onchain revolving credit facilities to stablecoin-linked card programs and payment companies, built on three components:

1. Programmatic collateral control. Settlement receivables from the cardholder’s crypto wallet flow through Credit Coop's Spigot smart contract before reaching the borrower's operating account, and the Spigot automatically routes repayment from incoming proceeds: the onchain analogue of a lockbox 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, with no trustee and no discretion required.
2. Settlement-data-verified underwriting. As a registered Third Party, Credit Coop, with the program's authorization, receives daily settlement files for the participating stablecoin-linked card issuer, directly through a secure data pipeline established with Visa. Facility sizing, disbursement and repayment verification are all calibrated against Visa settlement records rather than borrower-reported data: two independent sources of truth (settlement data and onchain record), neither controlled by the borrower. With this data, lenders can adjust their credit exposure, which has increased lender participation and reduced borrowing costs for participating programs by as much as 30%.

The next phase: just-in-time funding. Direct settlement data integration turns data access into automated deployment. Rather than a program drawing its facility in advance and holding idle capital between cycles, the daily settlement file arrives at Credit Coop's secure webhook, the system parses the net-debit amount, and a disbursement for exactly that amount executes to the Visa settlement address the same day. Programs pay for capital only during use. That window is hours, not days. Lender exposure shrinks to daily settlement amounts rather than full facility size, letting the same capital base support multiple properly-sized card programs. And because disbursements execute via an always-on smart contract servicer against Visa-reported settlement amounts, there are no missed cutoffs, no manual errors and no weekend gap: settlement financing that scales with program volume automatically, every disbursement tied to an actual, Visa-reported obligation.

Proof at scale: four programs, one infrastructure

Rain - Rain operates as a Visa Principal Member powering many stablecoin card programs around the world. Since 2023, Rain has funded its daily Visa settlement obligations through a Credit Coop revolving facility. Rain draws to fund settlement; upon receipt of the daily VSS-110 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.

Onchain track record (event counts as of 8/19/26):

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.

Every settlement obligation over the life of the facility has been funded on time, without a failed payment.

Karta: extending credit to an off-chain card program. Karta is a U.S.-issued premium Visa credit card for global travelers, operating as a card program under Rain's BIN. Credit Coop provided Karta's receivables financing as the program launched and scaled, with 34 borrows and 95 onchain repayments through the same Spigot infrastructure. In June 2026, Karta announced a $140M raise: a $15M Series A led by Galaxy Ventures and a $125M institutional credit facility from Community Investment Management, on 10x growth in 2025 and volume up 4x quarter-over-quarter in Q1 2026. This is the model working as designed: Credit Coop finances a new program at a scale no traditional lender would touch, seasons its credit with onchain data and graduates it to institutional warehouse capital.

Moto and Xplace: extending the model to credit-based programs. Both are programs under Rain’s BIN, running credit-based card programs that let users hold their assets until the bill comes due at month end rather than funding every transaction, a product that exists only because Credit Coop's working capital fills the gap. Both are financed on the same Credit Coop infrastructure.

Why this matters for the Visa ecosystem

The stablecoin-linked card segment on VisaNet continues to grow and each new program needs settlement working capital from day one. By replacing trusts, trustees and manual administration with smart contracts, Credit Coop makes receivables-backed financing viable at the millions scale, so more programs launch and more volume flows on VisaNet.

Programmatic, settlement-data-verified funding strengthens settlement reliability, replacing the failure modes of manual processes with 12,000+ onchain events and zero defaults. And the Karta trajectory shows the program maturation pipeline: onchain, settlement-data-verified credit performance becomes the underwriting record that unlocks institutional capital at scale. This is a repeatable pattern that positions the onchain credit framework as the foundation for financing the next generation of stablecoin-linked card programs.