XPlace Taps Credit Coop's On-Chain Revolving Credit to Fund Card Settlement

XPlace, a Dubai-based digital wealth platform, has partnered with Credit Coop, an on-chain structured finance protocol, to fund card settlement using an on-chain revolving credit line instead of traditional pre-funded settlement float. The partnership was announced on July 28, 2026.

Traditional card programs require issuers or program managers to pre-fund balances as collateral for settlement, capping spending at the size of the reserve pool. Under the new arrangement, XPlace draws from Credit Coop's on-chain credit line as settlement needs arise, freeing up working capital that would otherwise sit idle. According to XPlace, the line processed $459,000 in transaction volume in its first three days, with an outstanding loan balance of $100,000. Founder and CEO Artem Ponomarev said the platform can dynamically scale card volume based on member demand, no longer constrained by pre-funded balances.

For crypto-linked card programs, pre-funding is a common structural constraint: members can spend without selling their digital assets, so the platform must bridge on-chain assets within Visa or Mastercard's fiat settlement windows. Replacing large float balances with an on-chain credit protocol is a relatively new approach, but it introduces new risks, including the protocol's own liquidity and credit quality, smart contract risk, and whether the credit line can smoothly absorb concentrated member spending. XPlace has not yet disclosed loan terms, interest rates, or collateral structure.

Source: The Fintech Times