- Visa and Coinbase will roll out instant crypto funding for eligible customers in the US and EU.
- The new feature will enable Visa cardholders to swiftly capitalize on market opportunities.
- This partnership could potentially drive mass crypto adoption by legitimizing crypto and simplifying onboarding for traditional investors.
Traditional finance (TradFi) continues to integrate into crypto (or crypto is integrating into TradFi – whichever version you prefer).
Last week, payment processing giant Stripe acquired the stablecoin platform Bridge. Now, Visa is partnering with Coinbase to roll out instant crypto withdrawals and deposits.
Let’s unpack the benefits and transformative potential of Visa’s new venture.
Real-Time Crypto Deposits and Withdrawals
Visa has long been powering Coinbase’s crypto debit cards. Avalanche, too, recently announced its partnership with Visa. But this time, you won’t need a separate card for crypto transactions.
Millions of Coinbase users already have Visa debit cards connected to their accounts and can start using instant funding as soon as it rolls out.
Real-time funding will allow Visa and Coinbase customers to seize trading opportunities faster, which could be a game-changer in such a volatile market.
Imagine you could buy $BTC without delays before it nearly hits a new all-time high (yesterday’s peak was 0.04% below March’s ATH of $73,577). Many missed their chance because the current process of funding your exchange wallet is time-consuming.
According to Visa’s statement, the new feature will be available to users across the US and EU.
The luckiest users will be able to buy crypto on Coinbase and cash it out immediately to their bank account. This feature’s availability will depend on the region and bank.
What If? How Visa Could Drive Financial Revolution
Real-time crypto funding is exciting as is, but Visa could make its cards even more appealing by introducing crypto debt financing.
Leverage is risky and requires an in-depth understanding of market dynamics. But if you were to invest $100K in $BTC ten years ago, you’d be driving a Lambo Veneno by now.
The likes of Coinbase have been offering leverage for years, but its use was limited to seasoned crypto traders. The steep learning curve of most trading platforms fends off traditional investors.
Visa could potentially drive mass adoption by offering a simple way to borrow capital for crypto investments, particularly among those who prefer dealing with fiat currencies.
Does Crypto Have an Identity Crisis?
Ironically, a payment solution born to disrupt TradFi is now embracing it. Partnerships between industry leaders like Visa and Coinbase exemplify this evolution.
Is it a good thing? Some would argue cooperation with TradFi goes against the very concept of crypto, which is true.
On the other hand, it can drive mass adoption by legitimizing crypto and breaking down entry barriers for traditional investors.
References
- Coinbase to Integrate Visa Direct to Deliver Real-Time Account Funding for Customers (Visa)
