Visa report on stablecoin DeFi lending misses a trick
Originally published in Ledger Insights on October 16, 2025.
Ledger Insights reviews Visa's report on stablecoin-based DeFi lending, noting how smart contracts enable automatic collateral liquidation and reduce counterparty risk versus traditional banking. The piece flags a tension in Visa's own framing: while positioning itself to help financial institutions participate in onchain lending, the report also describes these platforms as automating intermediation "instead of traditional institutions," effectively displacing banks rather than partnering with them.
