Coinbase, the largest cryptocurrency exchange in the United States, has teamed up with global payment company Visa to make moving funds easier and faster for crypto users.
On 29 October, the two entities announced that users in the US and the EU who qualify will soon be able to make direct deposits and withdrawals with their Visa debit cards.
Through this new partnership, Coinbase will use Visa Direct to give eligible users the ability to deposit and withdraw funds almost instantly, directly from their Visa debit cards.
The goal is to make crypto transactions more accessible and efficient for everyday users.
This collaboration marks a key step in Coinbase’s mission to bring faster and simpler access to digital currency.
The feature aims to improve the experience of buying and selling cryptocurrency by providing almost instant access to funds.
Previously, moving money into or out of crypto exchanges could take time due to bank processing delays. The integration with Visa Direct will reduce these delays, allowing for quicker trades and purchases.
Coinbase’s Senior Director of Product Management, Akash Shah, shared his excitement about the new feature, saying,
“Bringing this feature to our customers supports our mission of increasing economic freedom in the world. The integration with Visa Direct gives our eligible customers real-time access to their funds for trading.”
The new development not only allows for instant deposits but also enables users to make fast withdrawals to their bank accounts if they have a Visa card.
The Head of Visa Direct for North America, Yanilsa Gonzalez Ore, commented that the service will allow Coinbase customers to “leverage trading opportunities anytime”, creating a smoother experience by reducing the usual financial delays crypto investors face.
Expanding crypto payments
Coinbase and Visa’s partnership is part of a broader trend as Visa continues to form collaborations within the crypto space.
In recent months, Visa has announced several partnerships with other digital currency platforms. For example, on 22 October, the Avalanche Foundation introduced a Visa crypto card that lets users make payments using balances in Wrapped AVAX (wAVAX), BENQI Liquid Staked AVAX (sAVAX), and USD Coin.
Earlier in May, EtherFi launched a Visa card connected to users’ restaking holdings.
More recently, on 28 October, FV Bank, a digital asset custody provider, partnered with Visa to launch a new debit card. This card allows FV Bank customers to turn their crypto into US dollars, making it easier to use crypto funds for payments.
This series of collaborations shows Visa’s increasing commitment to supporting the use of cryptocurrencies in everyday transactions.
Visa Direct, the platform being integrated with Coinbase, enables fast transfers to any Visa-branded card, whether it’s credit or debit. This service is widely used across various industries for sending money to friends, family, or employees, as well as receiving refunds and payments.
The addition of Visa Direct to Coinbase’s offerings expands the exchange’s ability to provide customers with quick and reliable access to their funds.
Competition & navigating new regulations
Coinbase’s new partnership with Visa comes at a time of growing competition. One of its main rivals, Crypto.com, recently overtook Coinbase in US dollar trading volume, marking a shift in the centralised exchange market.
This increasing competition highlights the need for Coinbase to continue offering faster and more user-friendly options for its customers.
Additionally, the move comes during a quieter period for traditional finance firms in the crypto market. The fallout from the FTX collapse in 2022, which shook both the crypto and banking sectors, has led some traditional financial institutions to hold back on crypto initiatives.
However, new regulations in Europe have provided some much-needed clarity for companies like Coinbase.
The EU’s Markets in Crypto-Assets Regulation (MiCA) began rolling out this year, outlining rules for crypto services to follow as they expand their operations in the region.
Recent data from The Block revealed that Crypto.com has seen a significant increase in its trading volume in 2023, reaching $132.95 billion in October compared to $37.11 billion in January, giving it a 63.4% market share.
Meanwhile, Coinbase’s trading volume dropped from $75.85 billion in January to $54 billion in October.
Despite this, data from CoinGecko showed that Coinbase still leads in daily trading volume, with $3.1 billion in transactions over the past 24 hours, compared to Crypto.com’s $888.2 million.
The Head of Digital Assets Research at VanEck, Matthew Sigel, commented on Crypto.com’s growth, noting, “Liquidity has kept pace with trade volumes, suggesting market makers are also more active on the platform”.
This rise is largely driven by Bitcoin ($BTC) and Ethereum ($ETH) trades, which account for over 96% of Crypto.com’s trading volume.
