Visa Launches Crypto Consulting to Boost Appeal

Visa Intensifies Crypto Market Engagement

The leading global payments processor, Visa, has significantly expanded its efforts to establish a strong presence within the cryptocurrency sector. Today, Visa announced the formation of a dedicated crypto advisory practice, operating under the umbrella of its Visa Consulting and Analytics (VCA) division.

Recent Developments and Market Sentiment

This strategic move follows comments made by Cuy Sheffield, Visa’s head of crypto, who recently characterized the asset class as gaining mainstream acceptance. Visa’s earlier acquisition of a CryptoPunk NFT signaled initial interest, but the launch of this specialized consultancy demonstrates a more comprehensive strategy for capturing a share of the rapidly evolving crypto market.

Over the past year and a half, the number of Visa’s collaborations with cryptocurrency platforms has doubled, as reported by Sheffield in a recent interview. Furthermore, consumer spending utilizing Visa’s crypto-linked card programs has surged to approximately $3.5 billion, a substantial increase from the $1 million recorded in July.

Consumer Demand for Crypto Banking

A newly released global survey conducted by Visa reveals a growing consumer appetite for cryptocurrency services within traditional banking. The survey, encompassing over 6,000 respondents, indicated that 40% would contemplate switching their primary bank to one offering crypto products.

Expanding Advisory Services

Sheffield highlighted a significant influx of inquiries from clients, partners, and established financial institutions seeking guidance on integrating cryptocurrency into their existing services. While Visa’s consulting division comprises around 700 professionals, the specific number dedicated to the new crypto practice has not been disclosed.

“Visa is uniquely positioned as a globally recognized, impartial brand, possessing extensive knowledge of crypto,” Sheffield stated. “This allows us to simplify the complexities of these emerging technologies and assist banks in incorporating them into their core offerings.”

Strategic Investments in Blockchain Security

To bolster its capabilities, Visa participated in a $60 million Series B funding round for TRM Analytics, a firm specializing in blockchain compliance. This investment was joined by American Express and Citi, underscoring the broader industry interest in secure crypto infrastructure. The move reflects the competitive landscape, where established card networks are adapting to the potential disruption posed by cryptocurrency to their traditional fee structures.

Partnerships and Custodial Solutions

Mastercard has also entered the fray, introducing a crypto rewards program in October, leveraging Bakkt as its digital asset custodian. Visa, similarly, does not directly hold cryptocurrency in custody, instead partnering with Anchorage Digital – a company in which it initially invested in 2019. Visa is developing its crypto API platform utilizing Anchorage’s services, enabling other banks to access secure custodial solutions.

Future Outlook: CBDCs and Debit Cards

Sheffield anticipates continued growth in Visa’s crypto-linked debit card programs, alongside emerging applications such as central bank digital currencies (CBDCs). Currently, only seven nations have launched CBDCs, but a considerable 87 others are actively exploring their implementation, as reported by The Atlantic Council.

Visa aims to capitalize on this growing interest by assisting banks in developing products related to CBDCs. The company has been actively researching the infrastructure required for consumer experiences with CBDCs and how consumers will interact with them.

“We are leveraging our research and ongoing discussions with central banks to help financial institutions prepare for the potential adoption of CBDCs in numerous countries,” Sheffield concluded.