Overview
- Visa’s report outlines a strategy to be the infrastructure layer for programmable credit by offering APIs, analytics, settlement, compliance and custody while avoiding token issuance or direct lending risk.
- The company quantifies market scale at more than $670 billion in stablecoin loans since 2020, with August 2025 activity at $51.7 billion across 427,000 loans from 81,000 borrowers and an average loan size of $121,000.
- Operational examples include Morpho’s liquidity meta-layer, Visa-partner Credit Coop’s receivables-based lending, and Huma Finance’s short-duration, cross-border working-capital loans, with Huma reporting $500 million in transactions and $98 million actively deployed.
- Stablecoin credit remains concentrated, with USDC and USDT accounting for roughly 98% of borrowing and lending volumes dominated by Aave and Compound, as the broader stablecoin market sits near $307 billion.
- Regulatory momentum from the GENIUS Act is drawing institutions into onchain credit even as the IMF warns about leverage and maturity risks and a recent Paxos PYUSD mint-and-burn error underscores operational hazards.