Visa says stablecoin-linked cards have turned into one of the fastest-growing corners of its network, with more than 160 programs live around the world during its fiscal second quarter.
Settlement funding gap
Payment volume across those programs grew nearly 200% year over year, and stablecoin settlement volume recently passed a $20 billion annualized run rate, more than 15 times higher than a year earlier.
Behind that growth sits a plumbing problem: every card program has to fund its daily settlement obligation before it collects anything from cardholders, and that money has to come from somewhere.
Visa noted that traditional warehouse lines rarely fit the newest programs:
“Many stablecoin-linked programs settle every day of the week, including weekends and holidays, and they often need capital well below the size at which warehouse economics typically work.”
Credit Coop and the Spigot
Credit Coop built a stablecoin-denominated revolving facility that funds daily Visa settlement and is secured by the settlement receivables themselves.
Receivables pass through a smart contract called the Spigot, which routes repayment automatically before proceeds reach the borrower’s operating account.
Visa described the arrangement in familiar terms for lenders:
“It mirrors a lockbox operating under a deposit account control agreement (DACA), enforced programmatically rather than through manual sweeps.”
Rain, a Visa Principal Member, has funded its daily settlement this way since August 2023, financing roughly $2 billion in settlement volume with $1.58 million in interest paid and zero defaults.
Across its whole platform, Credit Coop has financed more than $2.5 billion since 2023 and executed over 9,000 onchain repayments, while borrowing costs for participating programs have fallen by as much as 30%.
Karta scales up
Karta, a premium Visa credit card issued under Rain’s BIN, launched on a Credit Coop facility before it had much of a track record.
After growing 10x in 2025, the company announced a $140 million raise in June 2026, made up of a $15 million Series A led by Galaxy Ventures and a $125 million institutional credit facility from Community Investment Management.
Visa also outlined just-in-time settlement funding, where a daily settlement file triggers a same-day disbursement for exactly the net amount owed:
“Programs pay for capital only while it is deployed, and the window is hours rather than days.”
