Visa has announced a partnership with WeFi, a blockchain-based stablecoin infrastructure firm, to develop on-chain banking services. WeFi, co-founded by Reeve Collins, a former Tether executive, seeks to create an 'orchestration layer' that bridges decentralized finance and traditional payment systems, facilitating cross-border transactions and on-chain value storage. According to Collins, the platform will offer users 'essentially bank accounts' with IBAN numbers, and the company is obtaining necessary licenses to operate globally. The partnership with Visa is expected to 'close the last half mile' of on-chain banking infrastructure and will initially focus on selected markets in Europe, Asia, and Latin America, with expansion into additional markets pending regulatory approvals.
Mathieu Altwegg, Head of Product & Solutions in Europe at Visa, noted that the collaboration demonstrates how Visa's network can interact with on-chain models while maintaining regulatory compliance and reliability.