Global payments company Visa has formalized its plans to build a DeFi (decentralized finance) lending infrastructure for traditional financial institutions.
According to CoinDesk, Visa will provide the data and technology infrastructure to enable financial institutions to directly provide liquidity and participate in programmable lending services through the on-chain protocol.
In a recently published report, Visa stated that “on-chain financial markets have generated over $670 billion in stablecoin lending since 2020,” and that “stablecoins are emerging as a core part of automated credit market structures beyond simple payment methods.”
This means that blockchain-based credit infrastructure can be expanded into the actual lending business areas of banks.
This project is interpreted as an extension of Visa's "on-chain payment network" strategy, which has been pursued for several years. Previously, Visa has been conducting experiments utilizing major stablecoins like USDC to improve the efficiency of global remittances and payments.
This time, by incorporating lending infrastructure here, it will serve as a 'bridge' that allows traditional financial institutions to directly participate in the blockchain network.
Industry insiders see Visa's move as signaling the acceleration of "institutional DeFi." Analysts say that if traditional banks are able to access on-chain fund management and automated lending markets, the structure of the global credit infrastructure itself is likely to be restructured toward decentralization.
