Visa has announced a strategic initiative to redefine decentralized finance (DeFi) as onchain finance, aiming to connect traditional financial institutions with automated credit protocols. This move, dated October 16, 2025, positions Visa as an infrastructure and compliance layer without issuing tokens or directly handling credit.
In its report, Stablecoins Beyond Payments: The Onchain Lending Opportunity, Visa emphasizes that it will provide APIs, settlement systems, analytics, and compliance tools to facilitate institutional participation, acting as a bridge without assuming counterparty risk. The company highlights that the stablecoin credit market has exceeded $670 billion issued since 2020, underscoring the growing opportunity in on-chain lending.
Visa cites projects like Morpho, Credit Coop, and Huma Finance as examples of how algorithmic credit backed by collateral and automated liquidity operates. The initiative seeks to offer a secure, scalable, and regulated infrastructure, allowing institutions to engage with on-chain ecosystems without direct exposure to crypto market risks, while raising questions about the integration of traditional finance with disruptive technologies.
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