Stablecoin payments have been on the rise as crypto adoption hit the mainstream. In fact, over the past three months, stablecoin transaction volume has exceeded $14.1 trillion, with transaction count exceeding 3.9 billion.
Source: Visa Analytics Dashboard
With stablecoin usage across mainstream payment tools, Visa has made stablecoin a key part of its strategy. As a result of growing investments in the area, stablecoin activity and usage have continued to grow.
Visa’s stablecoin settlement surpasses $20B
Amid this rapidly growing usage, 160+ stablecoin-linked card programs were live in its fiscal Q2. For that reason, payment volume across those programs is up close to 200% year over year.
That’s not all; monthly volume has also been on the rise, reaching approximately $1.2 billion. Visa noted that the requirement for every card program to fund its daily settlement obligation before collecting from holders is the force behind recent growth.
Visa expands its on-chain lending reach
On-chain lending has become one of the fastest-growing sectors in digital finance, and Visa is attempting to capitalize.
In fact, over $16 billion in stablecoin-dominated loans have moved through lending protocols the past month. At the same time, the sector has seen over 1.6 million borrowers.
Source: Visa Analytics Dashboard
Amid sector-wide growth, Visa continues to expand its reach. Visa is connecting its VisaNet settlement data with blockchain-based lending infrastructure.
The integration would enable lenders to extend loans to finance payment obligations through VisaNet transaction data.
At the same time, lenders have access to its settlement data, thus enabling them to analyze borrowers’ activity and assess financing requests. Visa’s move to connect VisaNet with lending infrastructure is part of the company’s ongoing effort to grow its operations.
Is this a good sign for the crypto market?
Stablecoin extended usage and adoption by TradFi, including Visa, is good news for the crypto market as a whole.
Visa is not the only major market player making moves to expand its market influence. AMBCrypto earlier reported that Circle agreed to purchase Tazapay, which processes over $25 billion annually across the market for $400 million.
These moves indicate the growing importance and role of stablecoins, and every major player is seeking to have the majority share.
With institutions rushing to capitalize, it expands the user base for the market. Typically, expanded usage for stablecoins also means fresh demand for other crypto assets.
Final Summary
- Visa’s stablecoin settlement volume has passed a $20 billion annualized run rate, marking more than 15x higher than a year ago.
- 160+ stablecoin-linked card programs were live in Visa’s fiscal Q2, with payment volume across those programs up close to 200% year over year.
