The global payments system moves over $200T yearly but remains slow, costly, and capital-inefficient, with ~$5T locked in pre-funded accounts and remittances averaging ~6% in fees. Meanwhile, stablecoins have grown into a $280B+ market, proving digital dollars can move value globally in real time.

This convergence between global payment demand and blockchain infrastructure reveals a major gap: the lack of an “internet of credit”, a borderless, on-demand credit layer that provides instant liquidity without trillions in idle capital.

About the Report

This report explores the evolution of stablecoins in payments, challenges in today’s PayFi landscape, and introduces a new model: a stablecoin backed by short-term, fully collateralized real-world credit, connecting idle crypto liquidity to businesses’ short-term funding needs.

Key Takeaways

• Global payments exceed $220T annually, yet remain slow, costly, and capital-inefficient.

• Stablecoins have surged from $130B (Jan 2024) to $280B (Aug 2025), with on-chain volumes now surpassing Visa and Mastercard.

• A true “Internet of Credit” is emerging, connecting stablecoin liquidity with real-world lending and settlements.

• Kred introduces KUSD, enabling instant, fully collateralized, short-term credit for payments, remittances, and working capital.

• Borrowers gain instant, short-term working capital; lenders and DeFi protocols earn stable, real-world-backed yield.

• The addressable market spans hundreds of billions in daily liquidity needs, bridging crypto and traditional finance.

Authored by members of KernelDAO, with contributions from Ethereum Foundation, and Chainlink, this report outlines the biggest financial upgrade in decades.

Get the report → kerneldao.com/internet-of-credit/

What is the Internet of Credit? 

A borderless credit network that lets capital move as freely as data, enabling instant, on-chain financing across businesses and institutions.

Why Does It Matter?

Legacy systems lock up trillions in idle capital. By connecting stablecoin liquidity to real-world credit, Kred’s model turns static reserves into productive liquidity for global commerce.

What Makes Kred Different?

• Compliant: KYC/KYB-verified participants enable regulatory-ready, institutional access to On-chain credit.

• Instant Liquidity: 24/7 programmable liquidity on Ethereum, the world’s most trusted settlement layer.

• Scalability: 24/7 programmable credit on Ethereum, secured and verified by Chainlink’s oracle and interoperability network. Settlement volumes up to billions, provide high rewards at several 100 billion AUM

• Capital-Efficiency: Real-time credit replaces idle buffers. This could free up over $5 trillion in stagnant capital for productive use. 

The Bigger Vision

The convergence of stablecoins and real-world credit can revolutionize global payments. Stablecoins are already the digital cash of the internet, moving money instantly and at low cost. What’s missing is credit: an Internet of Credit that provides on-demand liquidity, eliminating delays, idle buffers, and capital inefficiencies.

Get the report → kerneldao.com/internet-of-credit/