Stablecoins Drive Over $670 Billion in On-Chain Loans as Banks Enter Blockchain Lending
A recent report from Visa reveals that stablecoins have expanded their role far beyond simple trading and payments, now underpinning more than $670 billion in loans issued via on-chain lending platforms over the past five years. According to Visa’s data, monthly lending volumes on blockchain platforms reached $51.7 billion as of August 2025. This activity involves over 81,000 active borrowers, with an average loan amount estimated at $76,000. Lending rates between September 2024 and August 2025 hovered around 6.7%, which aligns closely with traditional credit market benchmarks. The study highlights the growing interest from banks and financial institutions in leveraging












