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Visa Uses Onchain Lending to Finance Stablecoin Card Programs

(45 days ago) · 1 source · Summarized by CryptoBipto

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.

Visa, one of the world's largest payment networks, has reportedly started tapping onchain lending mechanisms to provide financing for its stablecoin card programs.

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  • decrypt.co

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StablecoinsDeFiInstitutional AdoptionPaymentsOnchain Lending

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