Visa Reports 160 Stablecoin Card Programs, Rapid Growth
Visa Reports 160 Stablecoin Card Programs, Rapid Growth
Anonymous
Key Points
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The Treasury’s proposed rule is open for public comment until October 19, 2026, giving issuers and other market participants a defined period to respond before the framework advances.
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Stablecoin-linked card programs face a funding mismatch: they settle with Visa daily in stablecoins but may collect from cardholders’ smart-contract wallets only periodically. Unlike large credit-card portfolios, these programs are often too small and too new to support conventional warehouse lending or securitization.
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Visa has opened settlement data to onchain lenders to help provide liquidity to stablecoin-card programs that may need only a few million dollars to be drawn and repaid each day.
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The scale of stablecoin-card activity remains extremely small relative to Visa’s network: one analysis puts the roughly $20 billion annualized stablecoin-settlement run rate at about one-tenth of 1% of Visa’s annual volume, making it economically negligible for Visa’s current earnings despite its rapid growth rate.
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Visa’s crypto-card growth does not yet mean merchants are broadly accepting cryptocurrency directly. Visa executives say direct merchant acceptance remains largely limited to pilots, while Visa retains the consumer-facing card rail and reportedly handles more than 90% of onchain crypto-card volume.
Visa reported more than 160 stablecoin card programs on its network, with payment volumes surging 200% year-over-year as digital currency adoption accelerates. Treasury Secretary Scott Bessent said the Treasury is "moving quickly to implement" regulatory rules to "provide the regulatory certainty businesses need to innovate and grow in America" and "cement the role of the U.S. dollar as the world's reserve currency."
The framework, enacted through the GENIUS Act in July 2025, will license stablecoin issuers starting January 2027 and impose broader restrictions by July 2028. Despite explosive growth, stablecoin card settlement remains tiny: roughly $20 billion annualized, or one-tenth of 1% of Visa's overall payment volume, showing the technology is still emerging primarily as an onchain funding layer rather than replacing traditional card networks.
Treasury Rules Set Stablecoin Licensing Timeline
The Treasury Department issued proposed rules in August 2026 to implement the GENIUS Act, establishing eligibility requirements and compliance deadlines for stablecoin issuers serving U.S. markets. Treasury officials confirmed a January 18, 2027 effective date requiring federal or state licenses for all stablecoin issuers. Broader restrictions take effect July 18, 2028, prohibiting digital asset service providers from selling non-licensed stablecoins to U.S. residents. Public comment closes October 19, 2026.
The rules require stablecoins to be backed by dollar-denominated assets, strengthening the dollar's position globally. The White House released a report in April 2026 finding that an effective ban on stablecoin yield would have minimal impact on traditional bank lending, addressing concerns that tighter rules could harm financial institutions.
Visa Partners With Onchain Lenders to Fund Card Programs
Stablecoin card programs face a timing problem: they settle daily with Visa in stablecoins but collect from cardholders only periodically. Rubail Birwadker, Visa's Head of Growth Products, said "trusted payment data and onchain technologies can work together to unlock new forms of liquidity, helping businesses access capital in ways that are more transparent, programmable and aligned to the speed of modern commerce."
In September 2026, Visa announced onchain credit partnerships, sharing settlement data with smart-contract lenders like Credit Coop to provide daily liquidity lines. Credit Coop reported processing $2.7 billion in volume through smart contracts with zero borrower defaults. These programs typically need only a few million dollars drawn and repaid daily—too small for traditional warehouse lending or securitization.
Stablecoin Cards Remain Economically Tiny for Visa
Visa's 160+ stablecoin card programs posted 200% year-over-year payment growth, with annualized settlement reaching $20 billion. This sounds large but masks a critical reality: $20 billion represents just 0.1% of Visa's overall payment volume, making stablecoin cards economically negligible for Visa's current earnings despite explosive growth rates. Visa executives confirmed direct merchant acceptance remains largely limited to pilots, with Visa handling over 90% of onchain crypto-card volume.
The structure shows stablecoins are scaling as an underlying settlement layer, not a replacement for card networks. Merchants continue receiving traditional fiat currency through standard Visa rails while cardholders fund purchases with stablecoins. Analysts at The Industry Spread cautioned that stress tests will emerge during downturns, noting "a smart contract cannot route receivables that never arrive" if cardholders default. Competitors like Mastercard are targeting higher-value institutional settlement use cases instead.
Dollar Dominance Claims Face Skepticism
Supporters argue the GENIUS Act framework strengthens the U.S. dollar by requiring stablecoins to be backed by dollar reserves, encouraging institutional adoption and global demand for Treasury securities. Treasury Secretary Bessent framed the rules as keeping "America the crypto capital of the world" while cementing dollar leadership. Newswise reported that stablecoins could increase demand for U.S. Treasury securities and reinforce the dollar's reserve currency status.
Critics contend those benefits are being overstated. The $20 billion stablecoin settlement run rate pales against Visa's $200+ billion annual volume, suggesting regulatory focus on payment stablecoins alone may not meaningfully shift global dollar demand. Analysts note that institutional settlement and treasury use cases—not consumer card programs—will ultimately determine whether stablecoins strengthen dollar dominance. Visa's data shows most growth remains concentrated in retail cards, not institutional pipelines.
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