Visa Uses Onchain Lending to Finance Stablecoin Card Programs
2h ago · 1 source · Summarised by CryptoBipto — how we make this
Visa has begun using onchain lending protocols to finance its stablecoin-linked card programs. The move integrates decentralized finance infrastructure into traditional payment card operations, marking a notable step in how legacy financial companies interact with blockchain-based lending.
WHY IT MATTERS
Think of Visa as the highway that connects your credit or debit card to the store where you shop. Stablecoin cards let people spend digital dollars (stablecoins) using that same highway. Now, Visa is going a step further by borrowing money through blockchain-based lending platforms — essentially digital versions of banks that run automatically on code — to help fund these card programs. This matters because it shows that major financial companies are not just experimenting with crypto technology but are starting to use it in their core business operations. For anyone new to crypto, this is an example of how decentralized finance (DeFi), which was originally built as an alternative to traditional banking, is now being adopted by the very institutions it was designed to bypass.
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Plain-English explanations of the subjects this article touches, with every term defined.
- What are stablecoins, NFTs and tokenized assets?What stablecoins are and how they hold a steady value, what an NFT represents, and what it means to tokenize a real-world asset.
- What is DeFi, and how does decentralized finance work?Decentralized finance explained: liquidity pools, yield farming, impermanent loss, DAOs and governance tokens, each with its own definition page.
- How are institutions and regulators approaching crypto?What institutional adoption means in crypto, how spot ETFs and corporate treasury holdings work, and how regulation shapes what is available to ordinary users.