Crypto exchange Coinbase has introduced Visa Direct on its platform via a new expansion with payments company Visa. Via the integration, Coinbase users in the United States and European Union can buy crypto on the platform using Visa debit cards.
According to the announcement made by Visa, the integration will enable easy funds transfer for users using real-time money transfers. The announcement noted that Coinbase has millions of users who have already connected debit cards to their accounts. This new feature will allow users with the eligible Visa card to access real-time delivery of funds.
Visa’s Head of Visa Direct Yanilsa Gonzalez also said that users with the card can fund their accounts anytime to carry out their trading operations. Coinbase exec Akash Shah clarified that the new feature will enable trust, flexibility, and security between the platform and its users.
He further added that this new feature is in line with the company’s mission to increase economic freedom worldwide. The integration with Visa Direct will enable customers with eligible cards to assess their funds in real time for trading.
Meanwhile, the new feature will also allow users to send funds directly from their debit cards to the platform. The users will also be able to convert their assets to cash and move them directly to their bank accounts. However, Visa has clarified that funds availability and transfers could be determined by regions and banks.
Tradfi institutions are returning to the crypto industry
The new partnership follows the same path as the previous one. Visa had been providing Coinbase and other exchanges with crypto debit cards. The move also signals the return of Tradfi firms to exchange after FTX’s collapse and banking crisis caused by crypto in 2023.
The new development is a result of the recent events in the crypto space over the last year, particularly the activities of the Securities and Exchange Commission (SEC). One major activity of the regulator was approving Exchange-traded funds (ETFs). Visa has been a serious participant in the crypto sector, with the firm signing several partnerships with crypto firms. Recently, it inked a deal with fintech and crypto custodian FV Bank to provide credit card services.
Crypto firms have also been notching partnerships with financial institutions to tap into the demand and resurgence of the industry. For instance, Binance launched Binance Wealth, a new program that will enable wealth managers to add crypto to their portfolios.
Coinbase loses its top position in the United States
Despite Coinbase sitting alone as the only publicly listed company in the United States, it has seen its influence dwindle. It has dropped to the second position in the United States after Crypto.com climbed above it in July.
According to data, Crypto.com extended its dominance across July and September. The company saw its spot trading volume surge from $34 billion to $134 billion, compared to Coinbase’s $46 million.
While the surge in Crypto.com’s meteoric rise can be credited to a host of factors, analysts have said it is majorly down to the platform’s wide array of assets. While Coinbase has about 300 assets for users to trade from, Crypto.com has about 400 assets. These assets also include memecoins and other ecosystem tokens. However, its trading activity is still being dominated by Bitcoin and Ethereum.
Coinbase’s performance is a reflection of the performance of its stock compared to the leading digital asset, Bitcoin. According to data from Yahoo Finance, the stock has recorded a rise of 30% in its year-to-date, while Bitcoin is up by 63% in the same period.