Visa has announced a collaboration with WeFi, a stablecoin infrastructure firm, to establish a comprehensive on-chain banking and payment system. WeFi, co-founded by Reeve Collins, a former Tether executive, provides an 'orchestration layer' that bridges decentralized finance and traditional payment infrastructure, facilitating cross-border transactions and on-chain value storage. According to Collins, the platform will offer users virtual bank accounts, complete with IBAN numbers, and will obtain necessary licenses to operate globally.
The partnership aims to expand its reach by partnering with banks and institutions, focusing on underbanked regions. The rollout will commence in select European, Asian, and Latin American markets, with further expansion contingent upon local regulatory approvals.
Collins emphasized that the partnership with Visa completes the 'last half mile' of on-chain banking infrastructure. Mathieu Altwegg, Visa's Head of Product & Solutions in Europe, noted that this collaboration demonstrates how Visa's global network can interact with on-chain models while adhering to established regulatory frameworks and reliability standards.