Visa has announced a partnership with WeFi, a blockchain-based stablecoin infrastructure company, to establish a comprehensive on-chain banking system. WeFi, co-founded by Reeve Collins, a former Tether executive, specializes in creating an interface between decentralized finance and traditional payment systems, facilitating use cases such as cross-border transactions and on-chain asset storage. According to Collins, the platform will provide users with bank account-like services, complete with IBAN numbers, and will obtain necessary licenses to operate globally. The partnership plans to expand regionally, starting with select markets in Europe, Asia, and Latin America, and will collaborate with local banks and institutions to cater to the underbanked population.
The rollout will be contingent upon regional regulatory approvals and partnerships. Collins emphasized that the partnership with Visa completes the on-chain banking infrastructure, while Mathieu Altwegg, Visa's Head of Product & Solutions in Europe, highlighted the collaboration as a demonstration of Visa's global network interacting with on-chain models within established regulatory frameworks.