Visa says its crypto strategy is unchanged after a report that it is halting new partnership efforts

by Arthur · February 28, 2023

By Anushree Dave

Mastercard says it will continue to focus on blockchain technology

Visa Inc. on Tuesday said its crypto strategy would remain the same after a news report said it and fellow payments company Mastercard Inc. ( MA ) were halting efforts to forge new partnerships with crypto firms.

A Reuters report on Tuesday, citing sources familiar with the matter, said the companies are delaying the launch of crypto-related products and services until market conditions and the regulatory environment improve. The delay comes after the high-profile setbacks in the industry, including the bankruptcy of crypto exchange FTX and digital asset lender BlockFi.

A spokesperson for Visa ( V ) told MarketWatch that the company’s strategy will remain the same as before and that the report does not accurately portray Visa’s position on crypto.

The spokesperson said that recent high-profile failures in the crypto sector were an important reminder that there is a long way to go before crypto becomes part of mainstream payments and financial services, and that Visa’s priority will be to maintain the integrity of the company’s payment system.

“The recent failures do not change our crypto strategy and focus – to serve as a bridge, helping to connect both platforms and technologies emerging in the crypto ecosystem with our global network of 80 million merchants and 15,000 financial institutions,” the spokesperson said.

A Mastercard spokesperson told MarketWatch in an email that efforts will remain focused on the underlying blockchain technology and how it can be used to build more efficient systems for customers. Mastercard did not directly address whether it would pause the rollout of products and services.

Both Mastercard and Visa had partnered with crypto companies in the past year. Mastercard partnered with crypto lender Nexo in April to launch a crypto-backed payment card, and Visa had deals with crypto exchange FTX that they later cut ties with when the exchange filed for bankruptcy in November.

Crypto prices have also cooled in the past year, with bitcoin trading at $23,595, down from $43,198 a year ago, according to CoinDesk data. Ether (ETHE) is trading at $1,647, compared with $2,923 a year ago, according to CoinDesk data.

-Anushree Dave

(END) Dow Jones Newswires

02-28-23 1728ET