Stablecoin linked cards are becoming a bigger part of Visa’s global payment network, and more programs are now using stablecoins for card payments. In its fiscal second quarter, there were over 160 stablecoin linked card programs in operation worldwide, and payment volume from these grew nearly 200% compared to the previous year.
Visa also reported that stablecoin settlement volume recently crossed a $20 billion annual run rate, which means growth of more than 15 times year over year.
But behind these numbers, there is a financial challenge that most users do not see. Card programs have to fund their daily settlement obligations upfront, before payments come in from cardholders. Large, established companies usually get this working capital through traditional financing.
On the other hand, smaller or newer stablecoin linked programs do not need huge sums but they often lack the track record lenders look for. This is why Visa’s partnership with Credit Coop fills this gap with stablecoin denominated revolving credit and automatic onchain payments.
Onchain Financing Targets a Settlement Funding Gap
Needing settlement funding is not new in the card industry. Tools like warehouse lines and securitization are common for large card portfolios. The real challenge appears when a program is still trying to build payment volume and a credit history.
A new program might only need several million dollars that it can use and repay daily. It has to make settlements everyday, even on weekends and holidays. At this size, the high fixed costs of setting up traditional financing are not practical. Plus, lenders do not always get enough historical data to evaluate these smaller borrowers the same way as bigger, established programs.
Credit Coop, working with Visa, built a stablecoin denominated revolving credit line tailored to those needs. This facility handles daily Visa settlement payments and uses settlement receivables as collateral.
The system relies on Credit Coop’s Spigot smart contract to manage the collateral. The settlement receivables route through the contract before hitting the borrower’s operating account, and the Spigot automatically directs incoming payments straight to pay off the loan. It is similar to a lockbox in a deposit account control agreement, except everything runs automatically on-chain, not by manual payment sweeps.
So far, the platform has tracked over 9,000 onchain repayments, all publicly verifiable. Since 2023, Credit Coop has provided over $2.5 billion in cumulative financing, with more than 3,000 borrowing events and 9,000 repayments on-chain. So far, there have been no defaults.
Credit Coop also gets daily Visa settlement files from participating programs through a secure channel, with the programs’ authorisation. This data, combined with onchain repayment records, helps measure credit facility size, control disbursement, and check repayments. As lenders get more comfortable with the model, borrowing costs for these programs have dropped by up to 30%.
Rain and Karta Put the Model to Work
Rain is a long running example of how this financing model works. Since August 2023, the Visa Principal Member has used a Credit Coop revolving facility to fund its daily Visa settlements.
The process keeps the credit line cycling smoothly. Rain draws funds to cover settlements, using the daily Visa settlement file to transfer funds to the Visa settlement address. When cardholders repay, the money travels through Rain’s smart contracts to the Spigot, covering interest and replenishing the linne of credit.
The numbers show Rain financed about $2 billion in cumulative settlement volume, with zero defaults, over 2,000 borrowing events, and more than 7,000 repayment events. Interest paid so far is $1.58 million and rising. Rain tends to draw once to cover settlement across many cardholders and programs, while repayments come in batches, hence the higher repayment count.
The same infrastructure supports Karta, a U.S. issued premium Visa credit card for global travelers under Rain’s BIN. Karta was able to launch and grow even as it built its credit history. In June 2026, after 10x growth in 2025, Karta announced a $140 million raise, which includes a $15 million Series A led by Galaxy Ventures and a $125 million institutional credit facility from Community Investment Management.
Moto and Xplace, also under Rain’s BIN, are financed via the Credit Coop platform.
The next development mentioned is just-in-time settlement funding. Instead of drawing funds in advance and letting capital sit idle between settlements, the daily Visa settlement file could trigger same day disbursements for exactly what is owed. This way, programs only pay for capital while they are using it, lender exposure matches daily settlement amounts more closely, and funding is available every settlement day, including weekends and holidays.
