Visa Sees Stablecoins Powering the Next Generation of Lending

Stablecoins are no longer just for crypto traders — at least that’s the view from Visa, one of the biggest players in global finance. In its latest research report, the payments giant says stablecoins could transform how credit works across borders and industries.

Good to Know

• Visa estimates stablecoins have already powered over $500 billion in loans.
• The firm sees stablecoins as core infrastructure, not speculative tools.
• Visa highlights tokenized assets, crypto credit, and digital identity as three major innovations.

According to Visa, stablecoins have quietly become the backbone of a new type of lending market — one that’s fast, transparent, and built on blockchain rails.

“Stablecoins have evolved from crypto trading tools to foundational infrastructure powering a new lending space that has grown rapidly in the past year, processing over half a trillion in loans to date… For banks and financial institutions, this represents both an opportunity and an imperative to understand how programmable money is reshaping credit markets.”

The company points out that what started as a niche way to trade crypto has matured into a mechanism that could redefine global lending. Banks and fintech firms now have a clear reason to study stablecoins — not as competitors, but as potential partners in the next era of credit.

Tokenized Assets as New Collateral

One key idea in Visa’s report is that traditional assets like bonds or real estate can soon be tokenized and used as collateral on blockchain-based lending platforms. In practice, that means credit markets could open up to more participants, with faster settlement and fewer intermediaries.

By converting assets into digital tokens, lenders can unlock new liquidity pools while borrowers gain access to funding without the usual friction seen in traditional systems. Visa describes this as the next logical step toward merging traditional finance with blockchain efficiency.

Crypto Credit

Visa also highlights how crypto credit programs are evolving. Instead of only trading or staking, users can now borrow against their digital assets directly. That approach gives holders more flexibility, enabling them to use their crypto holdings as working capital while still maintaining long-term exposure.

For financial institutions, these programs create a new avenue for growth. By integrating blockchain-based lending mechanisms, banks could serve both traditional clients and Web3-native borrowers with more tailored products.

Building Digital Identities and Onchain Credit

Perhaps the most forward-looking part of Visa’s research centers on digital identity. The company predicts that blockchain-based credit profiles will eventually replace traditional scoring models.

“The next wave of innovation focuses on solving this challenge through the development of onchain identity and credit scoring systems. These emerging solutions analyze a wallet’s transaction history, asset holdings and interactions with other protocols to construct a credit profile, all while preserving user privacy through techniques like zero knowledge proofs.”

Visa’s vision points toward an era where individuals and businesses can prove their financial reliability without sharing personal data, combining privacy with verifiable reputation.

FAQ

What does Visa mean by “programmable money”?

It refers to digital currency that can execute transactions automatically under predefined rules — useful for lending, repayment, and settlement.

How big is the stablecoin lending market now?

Visa’s report says more than $500 billion in loans have already been processed using stablecoins.

Can traditional banks join this new credit ecosystem?

Yes. Visa says stablecoins open opportunities for banks to innovate while staying compliant and connected to global liquidity networks.

What are onchain credit scores?

They are blockchain-based systems that evaluate wallet activity and transaction history to measure creditworthiness while preserving privacy.