Visa: Stablecoins or Reshaping the $40 Trillion Global Credit Market

ChainCatcher news, according to Visa's latest report, stablecoins have facilitated approximately $670 billion in loans over the past five years, with the average loan amount rising from $76,000 to $121,000, of which USDC and USDT account for 98%, aligning with their market share in the total market capitalization of $307 billion.

Visa points out that stablecoins are expected to drive traditional financial institutions to migrate a portion of the $40 trillion global credit market to a blockchain programmable system, thereby changing the credit landscape. However, the International Monetary Fund (IMF) warns that the rapid development of stablecoins could lead to issues such as increased leverage in the financial system, risk accumulation, and maturity mismatches. The Visa report emphasizes that banks and financial institutions should understand how programmable money is reshaping the credit market to seize potential opportunities.