Stablecoins are evolving from a payments tool into the foundation of onchain credit markets. In collaboration with Visa, Allium is excited to share our new whitepaper, “Stablecoins Beyond Payments: The Onchain Lending Opportunity.” The report explores how programmable, transparent, and global lending markets are emerging onchain powered by stablecoins.
Read the full whitepaper: Stablecoins Beyond Payments: The Onchain Lending Opportunity (Visa)
Explore the dashboard on onchain lending: Visa x Allium Onchain Analytics
The Rise of Onchain Credit Markets
Stablecoin lending has rapidly expanded, signaling a new era for onchain finance. In August 2025 alone, $51.7B in stablecoin loans were originated, bringing total lending volume since 2020 to $670B.
After a downturn following the FTX and Terra Luna collapses, lending activity began recovering strongly in 2024 — now showing steady institutional growth.
Today, the market serves 81K monthly active borrowers and over 1.1M all-time, with an average loan size of $121K — a clear sign of increasing professional participation.
Market Concentration and Innovation
While USDC and USDT still make up over 98% of stablecoin supply, and Aave and Compound handle 89% of loan volume, new protocols are emerging. Morpho V2, for example, has quickly captured 4% of total market share.
Programmable Credit Infrastructure
Borrower APRs average 6.4%, while lender APYs hover around 5% — creating an efficient, transparent credit market without traditional intermediaries.
Smart contracts now:
- Enforce loan terms automatically
- Monitor collateral in real-time
- Adjust rates algorithmically
- Liquidate positions when needed
This replaces manual credit checks with code — a new model for programmable, auditable, and globally accessible credit infrastructure.
Read the Full Report & View the Dashboard
Dive deeper into the data and explore live metrics by chain, stablecoin, and protocol on the Visa x Allium Onchain Analytics Dashboard.
Read the full whitepaper: Stablecoins Beyond Payments: The Onchain Lending Opportunity (Visa)
Explore the dashboard: Visa x Allium Onchain Analytics
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