A new report by Visa explains that stablecoins are no longer just for payments and are taking a growing share of the credit markets. Stablecoins are no longer just for cross-border payments or crypto trading. On Thursday, October 16, credit…A new report by Visa explains that stablecoins are no longer just for payments and are taking a growing share of the credit markets. Stablecoins are no longer just for cross-border payments or crypto trading. On Thursday, October 16, credit…

Visa: Stablecoins to take on lending, Huma Finance leads

2025/10/17 00:39

A new report by Visa explains that stablecoins are no longer just for payments and are taking a growing share of the credit markets.

Summary
  • Stablecoins are playing a growing role in the $40 trillion global credit market, says Visa
  • DeFi platforms have issued $670 billion worth of stablecoin loans since 2020
  • Currently, there’s $14.8 billion in outstanding loans, with 427,000 loans issued in August alone
  • Visa report highlighted Huma finance as one of the standout performers

Stablecoins are no longer just for cross-border payments or crypto trading. On Thursday, October 16, credit card giant Visa published a report detailing the growing role of stablecoins in the on-chain credit market. The report outlines their expanding role in the $40 trillion global credit market.

According to the report, on-chain lending with stablecoins has risen to more than $670 billion in total loans since 2020. That amounts to $51.7 billion in monthly activity, with more than 81,000 active borrowers. Moreover, the stablecoin loan market continues to grow, with DeFi platforms issuing 427,000 loans in August alone. Additionally, total outstanding loans amount to $14.8 billion, with $17.5 billion in total liquidity.

Visa report highlights Huma Finance growth

One of the players that Visa highlighted in its report is Huma Finance, an on-chain lending protocol. It enables short-term, receivables-backed lending using stablecoins, primarily for cross-border payments and working capital.

These short-term loans, with an average duration of 1 to 5 days, are playing an increasing role in cross-border payments. Notably, Huma Finance reached $500 million in transaction volume, which includes loan originations and repayments. The network also has $98 million in actively deployed loans.

Stablecoin use cases are growing in general. After the GENIUS Act created a stable regulatory framework for stablecoins, more companies are joining the industry, which is projected to reach $1 trillion to 4 trillion by 2030.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact service@support.mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.
Share Insights

You May Also Like

Bitcoin Institutional Adoption: Why Saylor Predicts a Crucial Shift in BTC Price Action

Bitcoin Institutional Adoption: Why Saylor Predicts a Crucial Shift in BTC Price Action

BitcoinWorld Bitcoin Institutional Adoption: Why Saylor Predicts a Crucial Shift in BTC Price Action The cryptocurrency world is constantly evolving, and few voices carry as much weight as Michael Saylor, the visionary co-founder of MicroStrategy. Recently, Saylor shared a fascinating perspective that could redefine how we view Bitcoin institutional adoption and its impact on future price movements. His insights suggest a significant shift on the horizon, one that promises both stability and perhaps a touch of unexpected calm for the often-turbulent crypto market. What Does Increased Bitcoin Institutional Adoption Mean for Volatility? During a recent appearance on the CoinStories YouTube channel, Michael Saylor elaborated on a crucial trend: the growing involvement of institutional investors in the Bitcoin ecosystem. He believes this influx of capital from large financial entities will fundamentally alter Bitcoin’s market behavior. Saylor explained that as institutions commit more capital, the market naturally becomes more robust and less susceptible to the dramatic price swings retail investors have grown accustomed to. This isn’t just a theory; it’s a natural progression for any maturing asset class. Essentially, more money from stable, long-term players means fewer sudden spikes and crashes driven by speculative fervor. Decreased Price Swings: Institutional capital tends to be ‘sticky,’ meaning it’s less likely to panic sell during minor corrections. Enhanced Market Depth: Larger orders from institutions provide greater liquidity, making it harder for single events to drastically move the price. Increased Stability: A more stable market is often seen as a prerequisite for even wider Bitcoin institutional adoption. This shift, while beneficial for long-term growth and legitimacy, might present a different experience for day traders who thrive on high volatility. Is Market Maturation a Disappointment for Some Investors? While the idea of a more stable Bitcoin might sound appealing to many, Saylor acknowledged that it could be a bittersweet development for a segment of the investor community. Specifically, those who have profited immensely from Bitcoin’s notorious volatility might find a subdued market less exciting. He described this as a natural part of Bitcoin’s maturation process. Think of it like a wild frontier slowly becoming a developed city; the excitement of the untamed wilderness gives way to established infrastructure and predictable routines. For Bitcoin institutional adoption to truly flourish, a certain level of predictability is necessary. However, this doesn’t mean Bitcoin will become boring. Instead, it suggests a transition from a speculative asset to a more recognized store of value and potentially a global reserve asset. The focus might shift from rapid, short-term gains to sustained, long-term appreciation, mirroring traditional financial assets that have undergone similar transformations. Bitcoin has indeed shown signs of this evolution, trading around the $115,000 level since reaching a new all-time high in August. This consolidation around higher levels suggests a foundational strength building up, rather than wild, unpredictable movements. Navigating the New Landscape of Bitcoin Institutional Adoption Understanding this evolving market dynamic is crucial for all participants. For institutions, a less volatile Bitcoin offers a more attractive risk profile, making it easier to justify larger allocations and integrate it into diversified portfolios. This further fuels Bitcoin institutional adoption. For retail investors, the strategy might need to adapt. Instead of chasing quick pumps and dumps, a long-term hodling strategy focused on Bitcoin’s fundamental value proposition could become even more paramount. The benefits of this maturation are clear: Greater Legitimacy: Institutions bring credibility and regulatory clarity. Reduced Risk: Less volatility means a safer asset for broader investment. Long-Term Growth Potential: A stable foundation supports sustainable value appreciation. The challenge, however, lies in managing expectations. Those accustomed to parabolic surges might need to adjust to more modest, albeit consistent, growth. This isn’t a signal to abandon Bitcoin, but rather to recognize its evolution into a more sophisticated financial instrument. Michael Saylor’s perspective highlights that while the ride might become smoother, the destination – a globally adopted, robust digital asset – remains incredibly compelling. The path to mainstream acceptance often involves shedding some of the wildness that initially attracted many, in favor of stability that appeals to the masses. Michael Saylor’s insights offer a powerful glimpse into Bitcoin’s future. The increasing tide of Bitcoin institutional adoption is set to transform its market dynamics, potentially ushering in an era of more subdued price action. While this might temper the excitement for some, it signifies a profound maturation, solidifying Bitcoin’s role as a legitimate and enduring asset class. This evolution is not a setback but a necessary step towards its ultimate potential, inviting a new wave of investors seeking stability alongside innovation. Frequently Asked Questions About Bitcoin’s Market Evolution Q1: What does Michael Saylor mean by “subdued BTC price action”? A1: Saylor suggests that as more institutional investors enter the Bitcoin market, its price swings (volatility) will likely decrease. This means fewer extremely large daily percentage gains or losses, leading to a more stable and predictable price trajectory. Q2: Why would institutional investors lead to less Bitcoin volatility? A2: Institutional investors typically operate with larger capital, longer investment horizons, and more rigorous risk management strategies. Their presence adds significant liquidity and depth to the market, making it less susceptible to rapid price movements caused by smaller, speculative trades. Q3: Is decreased volatility a good thing for Bitcoin? A3: For the long-term health and widespread acceptance of Bitcoin, yes. Lower volatility makes Bitcoin a more attractive asset for large corporations, pension funds, and traditional financial institutions, fostering greater Bitcoin institutional adoption and legitimacy. However, it might be less appealing for short-term traders who profit from large price swings. Q4: How should retail investors adapt to this potential shift? A4: Retail investors might consider shifting their focus from short-term trading to long-term investment strategies, often referred to as “hodling.” Emphasizing Bitcoin’s role as a store of value and a hedge against inflation could become even more pertinent in a less volatile market. Q5: Has Bitcoin shown signs of this maturation already? A5: Yes, the article mentions Bitcoin trading around the $115,000 level since reaching a new all-time high in August, suggesting a period of consolidation rather than extreme volatility, which aligns with Saylor’s observations. What are your thoughts on Michael Saylor’s predictions for Bitcoin? Do you welcome a more subdued market, or will you miss the wild rides? Share this article with your friends and fellow crypto enthusiasts on social media to spark a conversation about the future of Bitcoin institutional adoption! To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin institutional adoption. This post Bitcoin Institutional Adoption: Why Saylor Predicts a Crucial Shift in BTC Price Action first appeared on BitcoinWorld.
Share
Coinstats2025/09/20 14:40
Share