Visa and Mastercard have put their plans to establish partnerships with digital asset firms on hold, dealing another blow to the beleaguered crypto industry. Recent bankruptcies of major players like FTX and BlockFi have sent shockwaves through the industry, leading the payment giants to postpone launching specific cryptocurrency-related products and services until market conditions and regulatory environments improve.
Previously, the credit card companies viewed cryptocurrencies as the next big thing in finance, forming multiple partnerships with crypto firms. Visa had recently expanded its partnership with FTX, only to sever ties with the firm shortly thereafter. Mastercard had launched the world’s first crypto-backed payment card in collaboration with crypto lender Nexo.
However, the unpredictable regulatory landscape in the US has left the payment giants navigating choppy waters. The industry’s fluctuations have left them with no choice but to raise anchor and steer toward a safer harbor to reevaluate their strategies.
In summary, Visa and Mastercard have delayed their crypto partnerships following recent bankruptcies in the industry. They have put their plans on hold until market conditions and regulatory environments improve.