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Visa’s numbers make stablecoins sound like a settlement story, but the more interesting shift is happening one layer down. As card issuers scale stablecoin-linked programs, they are running into a problem crypto rails were supposed to solve: funding the gap between settlement and collection. That gap is now spawning its own onchain credit market, with Credit Coop’s facility cutting borrowing costs by up to 30% as more lenders step in. The headline is a 15x jump in settlement volume. The real signal is that stablecoin infrastructure is maturing fast enough to need its own financing layer.
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In Today’s Edition:
**Headline:Visa Stablecoin Settlement Surges 15xQuick Bites:US Bank Takes Next Step in Launching StablecoinYield of the Week:**sUSDx/USDx’s 26.45% APY
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HEADLINE
**State of play: **Visa’s stablecoin settlement volume has surpassed a $20B annualized run rate, up more than 15x year over year, as stablecoin-linked card programs scale across its network.
More than 160 stablecoin-linked card programs were live globally in Visa’s fiscal second quarter, with payment volume up nearly 200% year over year.
Rapid growth is straining issuers’ working capital, since daily settlement obligations often outpace collections from cardholders.
Credit Coop built a stablecoin revolving credit facility with Visa, using daily settlement data to size funding and automate repayments onchain.
Rain has financed about $2B through the facility since August 2023, with over 2,000 borrow events and zero defaults.
Credit Coop has financed more than $2.5B in cumulative volume since 2023 across more than 3,000 onchain borrow events.
**What’s Next: **Watch for more issuers adopting settlement-backed credit facilities as Credit Coop’s model gets replicated, plus growing pressure on Visa to offer direct same-day funding based on net settlement data.
**Why it Matters: **Stablecoin settlement is quietly becoming real payments infrastructure inside a legacy network, not just a crypto-native experiment. The working capital bottleneck shows the constraint has shifted from adoption to financing plumbing.
**Our Take: **The more telling number here isn’t the $20B run rate, it’s the 30% drop in borrowing costs as more lenders underwrite these facilities. That’s a sign institutional capital is starting to treat stablecoin settlement receivables as a legitimate, financeable asset class.
QUICK BITES
Stablecoinscould saveSouth Korean merchants up to $3.8B a year.PayPalexpandsstablecoin rails with custom token issuance platform.Visa stablecoin settlementtops$20B annualized run rate, up 15x YoY.Tether, Fasanaralaunch$400M fund for stablecoin-enabled private credit.US Banktakesnext step in launching stablecoin with cross-border payment test.
YIELD OF THE WEEK
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Yield is generated from Axis’s market-neutral trading strategies spanning cross-venue arbitrage, funding rate arbitrage, and yield-bearing margin, with LP APY composed of 23.70% USDx yield and 2.75% PENDLE rewards.
The vaultaccepts DUSD/frxUSD Curve LP token deposits and automatically compounds trading fees and CRV emissions from the DUSD/frxUSD Curve pool, with ~$258k in TVL and a 30-day APY of 22.4%.Capital is fully deployed into the CurveBoostedFactory-frxUSDDUSD strategy at 100% allocation with a 2.50x boost, earning boosted CRV rewards through Curve’s gauge system on the DUSD/frxUSD stable pair.
Yield is generated from Curve trading fees and CRV gauge emissions, compounding automatically through share price appreciation at 28.3% APY, net of a 10% performance fee and 0% management fee.
The poolaccepts fxSAVE deposits and provides liquidity for f(x) Protocol’s stability pool gauge vault generating yield from wstETH and wBTC trading fees and collateral yields, maturing October 29, 2026, with ~$859k in pool liquidity.Capital is split across fxSAVE SY (~$577.96k, 67.28%) and PT fxSAVE (~$281.07k, 32.72%), earning a blended yield from underlying fxSP yield and FXN incentives.
Yield is generated from fxUSD Stability Pool trading fees and collateral yields, with LP APY composed of 7.50% fxSP yield and 5.71% FXN rewards.
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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.
