Visa: Stablecoins could reshape the global 40 trillion dollar credit market

According to Visa's latest report, stablecoins have facilitated about $670 billion in loans over the past five years, with the average loan amount rising from $76,000 to $121,000, with USDC and USDT accounting for 98%, in line with their market share of $307 billion in total market capitalization. Visa pointed out that stablecoins have the potential to enable traditional Financial Institution Groups to migrate part of the global $40 trillion credit market to a blockchain programmable system, thereby changing the credit landscape. However, the international monetary fund (IMF) warned that the rapid development of stablecoins could lead to problems such as increased leverage in the financial system, risk accumulation and maturity mismatch. The Visa report emphasizes that banks and Financial Institution Groups should understand how programmable currencies can reshape credit markets in order to seize potential opportunities.