<\/p>\n
On-chain<\/span> lending has accelerated, with stablecoins becoming the infrastructure powering \u201ca new lending space,\u201d according to <\/span>Visa<\/span><\/a>.<\/span><\/p>\n Stablecoin-denominated loans totaled $670 billion over the last five years, and $51.7 billion in <\/span>the month of<\/span> August alone, Visa said in a report<\/a> released Thursday (Oct. 16) and emailed to PYMNTS.<\/span><\/p>\n On-chain<\/span> lending facilitates capital market efficiency by using smart contracts to adjust interest rates based on supply and demand; creates global credit markets that never close, run automatically, provide transparent pricing <\/span>and<\/span> are open to anyone with internet access; and, with stablecoins, offer \u201cfiat currency-denominated stability,\u201d according to the report.<\/span><\/p>\n \u201cOn-chain lending reimagines financial services by using smart contracts to automate and facilitate intermediation instead of traditional institutions,\u201d the report said. \u201cWhen combined with stablecoins, these products enable new ways to lend and borrow with automated execution, near-instantaneous settlement <\/span>and<\/span> borderless capital flows \u2014 essentially creating a global credit market that never closes.\u201d<\/span><\/p>\n Looking out over the next decade, Visa expects to see tokenized traditional assets unlock collateral pools, crypto collateral power new forms of credit programs, and <\/span>on-chain<\/span> identity enable undercollateralized lending at scale, according to the report.<\/span><\/p>\n To help organizations pursue opportunities in <\/span>on-chain<\/span> finance, Visa offers consulting and implementation support that includes market analysis, <\/span>on-chain<\/span> finance strategy <\/span>and<\/span> custody strategy, <\/span>per<\/span> the report.<\/span><\/p>\n Advertisement: Scroll to Continue<\/p>\n<\/div>\n \u201cAs <\/span>on-chain<\/span> finance evolves to serve more traditional financial use cases, Visa is committed to helping our partners navigate this transformation and seize the opportunities it presents,\u201d the company said in the report.<\/span><\/p>\n It was reported in July that <\/span>digital asset lending<\/span><\/a> was making a comeback three years after the \u201ccrypto winter\u201d and that lending activity is poised to accelerate.<\/span><\/p>\n Visa CEO <\/span>Ryan McInerney<\/span><\/a> said during a July 29 earnings call that the company is focused on innovation and product development in <\/span>stablecoins<\/span><\/a> and other dynamic areas.<\/span><\/p>\n \u201cWe are piloting and partnering with stablecoin companies \u2026 as we build out our stablecoin settlement stack \u2026 we are working to streamline treasury operations, improve liquidity management and enable quick and most cost-effective cross-border transactions,\u201d McInerney said.<\/span><\/p>\n \u201cWe are also helping banks issue their own stablecoins and realize the benefits of programmable money,\u201d McInerney added. \u201cThere is so much more to come in this space.\u201d<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" On-chain lending has accelerated, with stablecoins becoming the infrastructure powering \u201ca new lending space,\u201d according to Visa. Stablecoin-denominated loans totaled $670 billion over the last five years, and $51.7 billion in the month of August alone, Visa said in a report released Thursday (Oct. 16) and emailed to PYMNTS. On-chain lending facilitates capital market efficiency […]<\/p>\n","protected":false},"author":2,"featured_media":408266,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-408265","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/408265","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=408265"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/408265\/revisions"}],"predecessor-version":[{"id":408267,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/408265\/revisions\/408267"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/408266"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=408265"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=408265"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=408265"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}