Visa Report Reveals Stablecoins’ Expanding Role in Credit Markets
Stablecoins are making waves beyond just payments and crypto trading. A recent Visa report highlights their growing influence in teh $40 trillion global credit market.
Since 2020, DeFi platforms have issued over $670 billion in stablecoin loans. This translates to $51.7 billion in monthly activity, with more then 81,000 active borrowers. In August alone, 427,000 loans were issued, and the total outstanding loans now stand at $14.8 billion.
One standout player is Huma Finance,an on-chain lending protocol.It offers short-term, receivables-backed loans using stablecoins, mainly for cross-border payments and working capital.These loans,typically lasting 1 to 5 days,are increasingly popular for international transactions. Huma Finance has reached $500 million in transaction volume, with $98 million in active loans.
The GENIUS Act has created a stable regulatory framework, encouraging more companies to join the stablecoin industry. This sector is projected to grow to $1 trillion to $4 trillion by 2030.
Stablecoins are no longer just for cross-border payments. They are becoming a significant part of the credit market, offering new financial solutions.
