Visa Eyes DeFi Lending Revolution with ‘Onchain Finance’ Strategy

Visa, the global payments giant powering nearly $16 trillion in annual transactions, is setting its sights on decentralized finance (DeFi) — or as it now calls it, “onchain finance.” In its latest report, Stablecoins Beyond Payments: The Onchain Lending Opportunity, Visa redefines DeFi to align it with institutional-grade infrastructure, positioning itself to bridge traditional finance (TradFi) and blockchain-based lending in the age of the GENIUS Act.

The company’s vision is clear: to build the world’s largest onchain lending network, much like it did for global payments. Visa envisions banks, asset managers, and private credit funds acting as liquidity providers in programmable lending ecosystems, while it provides the APIs, analytics, and compliance tools to make institutional participation seamless. By leveraging its reputation and technology, Visa aims to unlock trillions in institutional capital for decentralized credit markets.

According to the whitepaper, over $670 billion in stablecoin loans have been issued since 2020, marking the rapid evolution of stablecoins from trading instruments to the backbone of automated credit systems that settle instantly. Visa highlights three leading examples of this emerging sector: Morpho, a liquidity “meta-layer” enabling USDC loans backed by tokenized bitcoin; Credit Coop, which partners with Visa to tokenize merchant receivables; and Huma Finance, which facilitates cross-border working capital loans and automates supplier payments with double-digit yield potential.

Visa isn’t planning to issue tokens or fund loans directly. Instead, it seeks to control the “rails” — the digital infrastructure connecting decentralized credit with traditional financial systems. This strategic pivot signals Visa’s transformation from payment processor to the foundational layer of programmable finance, positioning it to drive the next wave of blockchain-based lending innovation.