Visa Report Highlights Stablecoin Growth And Huma Finance’s Role In Advancing Cross-Border Payments And On-Chain Lending
In Brief
Visa’s report highlights the rapid growth of stablecoin-based on-chain lending, with platforms like Huma Finance expanding cross-border payments, trade finance, and credit solutions while transforming global credit markets.
Global payments company Visa announced that it has published a report highlighting the fast growth of on-chain lending and the role of stablecoins in modernizing the $40+ trillion global credit market.
With the GENIUS Act now establishing a US regulatory framework for stablecoins, financial institutions worldwide are increasingly exploring stablecoin products and technologies.
Stablecoins offer unique advantages over traditional fiat, including instant, 24/7 settlement, particularly for cross-border payments and remittances. Positioned at the intersection of payments, lending, and capital markets, stablecoins have the potential to transform global credit by enabling smart contracts that automate loan agreements and connect lenders and borrowers internationally.
While still in the early stages of mainstream adoption, the infrastructure is already being deployed and tested in decentralized finance (DeFi).
The report highlighted that over the past five years, stablecoin-denominated loans have exceeded $670 billion, with the on-chain lending market now reaching $51.7 billion in monthly volume and over 81,000 active borrowers, reflecting growth and accelerating adoption.
Stablecoin Lending Expands: Driving Cross-Border Payments, Trade Finance, And Commercial Credit Solutions
The recent growth in stablecoin lending is revealing new practical applications for stablecoins in on-chain finance. Protocols such as Morpho leverage globally aggregated liquidity to optimize lending markets, while Rain, a stablecoin-linked card issuer, funds its credit programs through platforms like Credit Coop and Huma Finance. Beyond card solutions, Credit Coop provides cash-flow and revenue-based loans, and Huma Finance uses stablecoins to streamline trade financing and accelerate cross-border payments.
Leading lending platforms are now applying stablecoins to card programs, cross-border payment financing, and aggregated lending marketplaces, demonstrating commercial use cases beyond traditional cryptocurrency markets. Huma Finance, in particular, offers compliant cross-border payment financing, trade finance, and stablecoin-linked credit solutions. Its PayFi network provides businesses with revolving credit lines, receivable-backed loans, and factoring credit in stablecoins, enabling immediate fund access for supplier payouts and cross-border transactions without pre-funding or capital lockups. Businesses pay a daily fee, typically 6–10 basis points, while loans are often repaid within one to five days, allowing lenders to achieve yields exceeding 10% APY.
According to the report, Huma’s activity has expanded steadily, accelerating from late 2024, with monthly transaction volumes around $500 million and active liquidity reaching $140 million, of which $98 million is engaged in PayFi loans. A significant portion of this activity is tied to cross-border payment financing, highlighting stablecoins’ growing role in practical financial applications.
Stablecoins And On-Chain Lending Poised To Transform TradFi
According to Visa, the convergence of stablecoins and on-chain lending is creating several opportunities that could reshape traditional finance in the coming decade. One key development is the tokenization of real-world assets, which allows these assets to serve as collateral in on-chain lending. The market for tokenized assets has grown from $5 billion in December 2023 to $12.7 billion today, with projections suggesting it could reach $1–4 trillion by 2030. Institutional participation is already underway, with funds like BlackRock’s BUIDL Fund and Franklin Templeton’s OnChain U.S. Government Money Fund tokenizing Treasuries and government securities, while MakerDAO derives nearly 30% of its balance sheet from real-world assets. Tokenizing traditional assets such as corporate bonds, private credit, and real estate could integrate the $40+ trillion credit market into 24/7 programmable money systems, creating new liquidity and transparency opportunities.
Another emerging opportunity is using cryptocurrency holdings as collateral to power next-generation credit programs. Platforms like ether.fi are pioneering non-custodial credit cards that let users borrow against crypto assets while retaining ownership, potentially avoiding capital gains taxes and preserving upside exposure. Smart contracts provide real-time collateral monitoring and automated risk management, while banks and private credit funds could offer institutional liquidity through programmable lending protocols, unlocking new yield opportunities and reducing counterparty risk.
A third transformative area is undercollateralized lending enabled by on-chain identity and credit scoring. Current overcollateralization models are capital-intensive and limit borrowers to those with significant assets. On-chain identity solutions analyze wallet histories, asset holdings, and protocol interactions to create verifiable credit profiles while maintaining privacy through zero-knowledge proofs. Platforms such as 3Jane, Providence, and Credora are developing ways to assess creditworthiness from on-chain behavior, potentially enabling unsecured or undercollateralized loans. This innovation could bring the full spectrum of traditional credit products onto on-chain systems, expanding access and efficiency across financial markets.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
