As Crypto Investments Sputter, Payments Get a Second Wind

Source: American Banker

Even after the so-called crypto winter saw the valuations of many prominent digital currencies plummet, crypto companies are teaming with payment firms to make a growth push.

These partnerships are placing hopes on research that suggests people have not lost their appetite for crypto even after digital assets lost more than $1.3 trillion in the first half of 2022. Crypto exchanges are also struggling, with Binance backing out of a deal to acquire the troubled exchange FTX. FTX has also drawn attention from Congress, which may tighten rules for crypto exchanges.  

But firms are still adding payment products. Blockchain.com, for example, has debuted its Visa debit card, with 50,000 users live at launch. It's initially available in the U.S. ahead of expansion to other markets. The new debit card follows several moves by other payment companies over the past few weeks to expand access to cryptocurrency for payments and related services. 

"In the world we are headed towards, one where crypto is mainstream, people are going to need more access to the crypto market," said Lane Kasselman, president of Blockchain.com.