TLDR Tech / Crypto
Financing the Next Hundred Stablecoin-Linked Card Programs
Visa's stablecoin-linked card ecosystem has grown to 160+ active programs with $20 billion in annualized settlement volume, up 15x year over year, but early-stage issuers face a structural gap: daily settlement obligations must be funded before cardholders pay, at sizes too small to justify traditional warehouse facility costs. Credit Coop built a stablecoin-denominated revolving credit facility secured by settlement receivables, routing repayments through a Spigot smart contract and calibrating underwriting directly from Visa settlement files, cutting borrowing costs for participating programs by as much as 30%. The facility has financed over $2.5 billion in cumulative volume since 2023 with zero defaults and more than 9,000 onchain repayment events, serving programs including Rain (a Visa Principal Member) and Karta. The next phase adds just-in-time disbursements triggered directly by daily Visa settlement files, so programs pay for capital only during the hours it is deployed rather than maintaining a standing draw.
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