On-Chain Lending Nears $19B Milestone as Visa Forecasts 2100x Increase to $40T

On-Chain Lending Growth: On-chain lending markets reached a peak of $18.7 billion, with Visa projecting potential growth to $40 trillion, emphasizing stablecoins as the backbone for programmable credit markets.

Existing Models and Viability: Platforms like Maple Finance and Figure Markets have demonstrated the technical viability of on-chain lending, utilizing stablecoins for funding and tokenizing real-world assets for collateral.

Regulatory Framework and Market Dynamics: Visa's report highlights the importance of compliance-ready stablecoins and the impact of the GENIUS Act on creating a regulatory framework for stablecoin use in lending.

Efficiency and Institutional Adoption: On-chain lending offers competitive rates and operational efficiency through automation, with Visa positioning itself as a consultant for banks looking to integrate stablecoin strategies into their operations.