Visa has released a new report showing that stablecoins, once seen mainly as payment tools or trading instruments, are rapidly becoming a foundation for credit markets. The study points out that stablecoin-based lending is now a meaningful part of the $40 trillion global credit industry, with Huma Finance emerging as one of the leading protocols driving this transformation.

Key Findings from Visa’s Report

• Since 2020, decentralized finance platforms have issued more than $670 billion in stablecoin-backed loans.

• Currently, there are around $14.8 billion in outstanding stablecoin loans, with over 427,000 loans issued in August alone.

• Monthly loan activity has reached $51.7 billion, supported by over 81,000 active borrowers across DeFi platforms.

• The report highlights that stablecoins are moving well beyond payments and trading — they are now establishing themselves as critical components of on-chain lending and credit ecosystems.

Huma Finance: A Highlighted Protocol

Among the projects showcased, Huma Finance stands out for its innovative use of receivables-backed, short-term stablecoin lending. The platform focuses on cross-border payments and working capital, offering businesses fast access to liquidity.

Key metrics include:

• More than $500 million in transaction volume, covering both loan originations and repayments.

• Around $98 million in active loans currently deployed.

• Extremely short loan durations — typically 1 to 5 days — making them ideal for real-time financial flows and liquidity management.

Huma Finance is presented as a strong example of how stablecoins can be used not just for moving money, but for powering credit and lending at scale.

Broader Implications and Outlook

Visa’s analysis points to several important trends:

1. Evolving role of stablecoins
   From trading and remittances, stablecoins are now becoming part of the credit infrastructure of the global economy.

2. Huge potential market
   By connecting stablecoin lending to a $40 trillion global credit market, Visa suggests there is vast room for growth if adoption continues.

3. Challenges ahead

   • Managing risk and defaults in short-term lending environments.

   • Navigating regulatory scrutiny as stablecoins move deeper into financial markets.

   • Ensuring scalability and liquidity in times of market stress.

4. A new wave of innovation
   As stablecoin projects explore lending models and financial institutions begin testing hybrid systems, the line between traditional credit markets and decentralized finance may blur further.