Core Insights - Visa aims to replicate its success in payments within the decentralized finance (DeFi) sector by establishing a robust lending infrastructure [1][2][3] Group 1: Visa's Strategy and Vision - Visa's report rebrands decentralized finance as "onchain finance," targeting institutional compatibility amid regulatory changes [2] - The company envisions institutions as liquidity providers for programmable lending protocols, leveraging its data and compliance capabilities [3] - Visa's whitepaper indicates a shift from crypto experimentation to a focus on institutional infrastructure, highlighting over $670 billion in stablecoin loans issued since 2020 [4] Group 2: Onchain Credit Market Dynamics - The onchain credit market has evolved, with stablecoins becoming essential for automated credit markets that operate continuously [5] - Examples of functioning stablecoin-based credit systems include Morpho, Credit Coop, and Huma Finance, showcasing diverse applications [6][7] - Visa's approach mirrors traditional finance, focusing on technology without direct exposure to lending risks [7] Group 3: Infrastructure Development - Visa aims to control the infrastructure, including APIs, analytics, and settlement systems, to connect programmable credit with traditional finance [8] - The company does not intend to issue tokens or fund loans directly, instead facilitating connections between crypto projects and traditional finance [8]