Why Visa Terminated Its Global Debit Card Agreement With FTX

Visa, the world’s largest payment processor, said on Sunday it was terminating its global credit card agreements with fallen crypto exchange FTX. “The situation facing FTX is not good and we are closely monitoring what is happening,” a Visa spokesperson told Reuters. “We have terminated our global agreements with FTX and their US debit card program has been discontinued by their issuer.”

FTX and Visa had announced an expanded partnership in early October, including plans to launch account-linked Visa debit cards in 40 new countries.

At the time, Visa, which has been in the financial business since 1958, said it believes that virtual currencies will last and will ultimately have a lasting impact on the future of financial services around the world.

As part of the now-terminated deal, FTX was expected to issue company-branded Visa debit cards to all of its customers, worldwide, and the cards would have enabled users to use their cryptocurrency balances stored in FTX wallets to purchase goods and services locally. who accept Visa cards. In addition, holders of these FTX Visa debit cards would not be subject to any administrative or processing fees for using the card.

Meanwhile, Visa has made several recent trademark applications that indicate a move into the crypto market. On October 27th, licensed trademark attorney Mike Kondoudis revealed the latest trademark applications for the giant Visa. The applications suggest that the company is looking to develop or launch its own digital asset portfolio. The two trademark filings include software for managing digital, virtual, and cryptocurrency transactions, as well as cryptocurrency wallets. Additionally, there were provisions to explore cryptocurrencies, utility tokens, and blockchain assets.

Visa’s trademark applications did not stop at crypto transaction software and wallets. They also included provisions for non-fungible tokens (NFTs). Visa has also applied for trademarks for “non-downloadable physical goods” such as NFT collections. There were even hints of Metaverse’s ambitions in descriptions with words such as, “To provide a virtual environment where users can interact for the purposes of entertainment, entertainment or entertainment accessible in the virtual world.”

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