Visa, a global leader in digital payments, announced a strategic partnership with Coinbase, one of the largest cryptocurrency platforms. The two will streamline instant funding for Coinbase customers in the United States and Europe.
It comes amid growing demand for Bitcoin, highlighting the rising demand for more seamless and accessible trading experiences in the digital asset space.
Coinbase and Visa Direct Partner For Instant Funding
Visa announced the collaboration, saying it would allow Coinbase users to deposit funds into their accounts using eligible debit cards. This helps them swiftly access trading opportunities, especially in a fast-paced market such as crypto. Through Visa’s Direct network, the integration will enable users to transfer money directly to Coinbase in real-time.
Coinbase customers will also be able to purchase crypto directly on Coinbase with a Visa debit card and cash out their Coinbase balance to a bank account via a Visa debit card in real time.
“Providing real-time account funding using Visa Direct and an eligible Visa debit card means that those Coinbase users with an eligible Visa debit card know that they can take advantage of trading opportunities day and night,” Yanilsa Gonzalez-Ore, Head of Visa Direct, North America for Visa, said.
Read more: Coinbase Review 2024: The Best Crypto Exchange for Beginners?
Visa Direct’s reputation for speed and reliability is a key element of this collaboration, which aims to cut traditional fund transfer wait times. For everyday crypto traders, this speed can be crucial in a market where timing affects profitability.
This streamlined approach could accelerate cryptocurrency adoption, enhancing Coinbase’s appeal to both existing and potential users — particularly those previously hesitant due to the complexities of fund transfers.
“The integration with Visa Direct gives our eligible customers real-time access to their funds for trading. By enabling them to move money seamlessly and control their finances, we are delivering the trust, security, and flexibility they expect,” Akash Shah, Senior Director of Product Management at Coinbase, said.
Addressing Growing Demand for Bitcoin
The partnership comes at a time when the demand for crypto, and Bitcoin in particular, is growing. This is seen with rising cryptocurrency investment inflows. As BeInCrypto reported, inflows into digital assets reached $901 million last week, a trend attributed to heightened interest in Bitcoin amid upcoming US elections.
Meanwhile, Bitcoin ETFs, which continue to make BTC more accessible to institutional investors, are also driving demand and liquidity in the market. Some financial analysts even speculate that ETFs could push Bitcoin toward new all-time highs.
The addition of Visa Direct also addresses a need for greater synergy between traditional financial (TradFi) services and the blockchain. By collaborating with Coinbase, Visa is taking a bold step toward integrating more digital assets into its offerings. It adds to Visa’s recent interest in tokenizing real-world assets (RWA).
BeInCrypto reported the move, citing an initiative aimed at representing physical assets like real estate or art on the blockchain. Its push towards tokenized RWAs demonstrates a commitment to bridging TradFi and DeFi.
As the crypto market grows, and with heavyweights like BlackRock increasing their Bitcoin investments, Visa’s enhanced reach into the space could set the stage for even broader acceptance and use of blockchain in financial transactions.
Read more: Real World Asset (RWA) Backed Tokens Explained
Despite an enhanced foray into the crypto space, the card payments juggernaut is facing a lawsuit after the US Department of Justice (DOJ) accused Visa of illegal monopoly.
Specifically, the DOJ said Visa is illegally monopolizing the debit card market, which adds to the price of ‘nearly everything.’ Reportedly, over 60% of debit transactions in the US take place on Visa’s debit network.
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