Visa report reveals Stablecoins’ Expanding Role in credit Markets
Stablecoins are making waves beyond just payments adn crypto trading. A recent Visa report highlights their growing influence in the global credit market, valued at $40 trillion.
Since 2020, DeFi platforms have issued $670 billion worth of stablecoin loans. This translates to $51.7 billion in monthly activity, with over 81,000 active borrowers. In August alone, 427,000 loans were issued, with $14.8 billion in outstanding loans.
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 in cross-border transactions. huma Finance has reached $500 million in transaction volume, including loan originations and repayments, with $98 million in actively deployed loans.
the GENIUS Act has created a stable regulatory framework for stablecoins, encouraging more companies to join the industry. The market is projected to reach $1 trillion to $4 trillion by 2030.
Stablecoins are no longer just for payments. They are becoming a significant part of the credit market, offering new opportunities for borrowers and lenders alike.
