Visa has announced a collaboration with WeFi, a blockchain-based stablecoin infrastructure provider, to develop a comprehensive on-chain banking and payment system. WeFi, co-founded by Reeve Collins, a former Tether executive, offers a platform that integrates decentralized finance with traditional payment infrastructure, facilitating cross-border transactions and on-chain value storage. According to Collins, the platform will provide users with bank account-like services, including IBAN numbers, and will obtain necessary licenses to operate globally.
The partnership with Visa is expected to bridge the gap in on-chain banking infrastructure, with plans to expand to underbanked regions through strategic partnerships with banks and institutions. The rollout will commence in select European, Asian, and Latin American markets, with further expansion contingent upon local regulatory approvals and partnerships. Mathieu Altwegg, Visa's Head of Product & Solutions in Europe, noted that this collaboration showcases the interaction between Visa's global network and on-chain models, ensuring reliability and compliance with regulatory frameworks.