New Visa Card Allows Bakkt Users to Spend Bitcoin in Stores and Online

June 25, 2021 Bitcoin.com

Visa, Paypal Invest in Crypto-Focused Blockchain Capital’s New $300 Million Fund

June 23, 2021 Bitcoin.com

Institutional exchange launches crypto debit card

June 22, 2021 Coin Telegraph

Bakkt

Touted for its ability to allow users to "leverage the digital assets in their day-to-day lives,” the Bakkt Visa debit card is now available for online and in-store purchases.

Intercontinental Exchange subsidiary Bakkt has introduced a debit card allowing customers to use crypto for retail purchases.

In a Tuesday announcement, Bakkt said it had launched a fully virtual Visa debit card for both online and in-store spending. Card holders can spend Bitcoin (BTC) from their Bakkt accounts without waiting to convert the cryptocurrency to fiat.

“Imagine a Bitcoin user who sees a significant gain,” said Bakkt CEO Gavin Michael. “Now, instead of selling and waiting to transfer to a bank, they can simply walk into their favorite store, tap their Bakkt Card and buy that new item they’ve been eyeing [...] the Bakkt Card untethers Bitcoin owners from their online-only past into a world with countless options to leverage the digital assets in their day-to-day lives.”

Sutton Bank, a member of the Federal Deposit Insurance Corporation, is issuing the debit cards in compliance with a license from Visa. Bakkt avoids BTC transaction fees by selling crypto to users at a price higher than that of the current market rate, which it said has been “no more than 1.5% throughout 2021.”

The debit card release follows Bakkt announcing in March that it had launched a digital asset payments application allowing customers to use BTC and other cryptocurrencies for purchases. At the time, the platform was advertised as a way “to amplify consumer spending, reduce payment costs, and bolster merchant loyalty programs."

Many exchanges and digital asset marketplaces have launched their own crypto debit cards this year as awareness of the industry grows. BitPay announced in February that it would be offering a crypto Mastercard with support for six tokens, while the Visa card issued by Crypto.com allows users to fund their accountswith more than 100 cryptocurrencies.

Blockchain Capital secures $300M funding from PayPal, Visa

June 22, 2021 Coin Telegraph

Blockchain Capital

Blockchain Capital has attracted investment from PayPal, Visa, and other investors to the tune of $300 million for its Fund V LP.

PayPal and Visa are among several major investors to have participated in a $300 million funding for Blockchain Capital.

In a release issued on Tuesday, Blockchain Capital announced that the close of its Blockchain Capital V LP.

According to the release, Fund V, capped at $300 million was oversubscribed with numerous investors including college endowments, family offices, and pension funds participating in the capital raise.

As part of the announcement, Blockchain Capital stated that PayPal, Visa, and some other Fund V investors will take part in the firm’s strategic partnership program.

Blockchain Capital is one of the oldest blockchain-focused funds in the industry and currently backs major projects including crypto exchanges like Kraken and Coinbase as well decentralized finance protocols like UMA, Nexus, and Aave.

The firm also has footprints in the nonfungible token space with NFT marketplace OpenSea a part of its portfolio.

As previously reported by Cointelegraph, Blockchain Capital together with Morgan Stanley Tactical Value led a $48 million Series B funding round for asset tokenization platform Securitize. Back in May, the firm also led a $24.25 million capital raise for DeFi protocol Balancer.

Blockchain Capital is a major presence in the blockchain venture capital scene that has seen $16 billion in equity investments between 2012 and 2020.

Commenting on the success of Fund V and the pedigree of investors involved in the capital raise, the press release quoted Blockchain Capital co-founder and managing partner Bart Stephens as saying:

“We are incredibly honored to welcome a world class group of investors into Fund V who appreciate the value of a firm dedicated to a single industry. As founders ourselves, we know how hard it is to build companies, protocols and, indeed, a whole new industry.”

For Jose Fernandez da Ponte, PayPal’s vice president, the company’s support of Blockchain Capital is part of its efforts to engage with entrepreneurs at the cutting edge of the emerging decentralized economy.

Coinbase Visa Debit Card Adds Apple Pay, Google Pay

June 1, 2021 The Crypto Briefing

Ether breaks $500 billion market cap for first time

May 12, 2021 Coin Telegraph

Ether breaks 0 billion market cap for first time

Adoption

Bitcoin broke a $500 billion market capitalization in late December 2020.

Ether (ETH), the second most-valued cryptocurrency after Bitcoin (BTC), has hit a major milestone amid the ongoing price rally.

On May 12, Ether price set another historic record, surging to as high as $4,346, according to data from CoinMarketCap. Ether's market capitalization briefly surpassed $500 billion, reaching nearly $505 billion on Wednesday.

The new milestone marks Ether’s ongoing massive surge after ETH surpassed a $4,000 price mark for the first time in history on May 10. At the time of writing, ETH is trading at $4,317, up more than 6.4% over the past 24 hours and seeing massive gains of about 30% over the past seven days.

*Ether market cap 24-hour chart. Source: CoinMarketCap*

Following the parabolic surge, Ether is now larger than payment giant Visa or major investment bank JPMorgan in terms of market capitalization. At publishing time, Visa’s market valuation amounts to $481 billion, while JPMorgan’s market cap stands at $488 billion, according to data from financial information website MarketWatch.

Ether is the second cryptocurrency to hit a $500 billion market cap after Bitcoin. Ether took significantly less time to become a half a trillion-dollar asset. Launched in January 2009, Bitcoin took nearly 12 years to reach a $500 billion market capitalization in December 2020 at a price above $27,000. As the first version of an Ethereum cryptocurrency protocol was launched in July 2015, Ether is now five years and 10 months old.

As previously reported by Cointelegraph, Ethereum co-founder Vitalik Buterin became a billionaire after the Ether price rose above $3,000 on May 3. Megan Kaspar, a crypto analyst and co-founder of digital asset investment firm Magnetic, believes that Ether is now on track to hit a price target between $8,000 and $10,000 by late 2021. The analyst previously reportedly predicted that ETH would hit $3,400 when the cryptocurrency was trading about $1,200.

Visa and Tala Join Forces to Boost Cryptocurrency Adoption for Underbanked Populations

May 6, 2021 Bitcoin.com

Visa Diving Into Cryptocurrency ‘in a Very, Very Big Way’ — CEO Outlines 5 Crypto Priorities

May 2, 2021 Bitcoin.com

Got crypto? Here are 3 debit cards that let you spend your stack

April 30, 2021 Coin Telegraph

Banking

Crypto debit cards are growing in popularity as holders look for effortless ways to spend their assets.

As blockchain technology and the public's awareness of cryptocurrency continues to grow, a range of new use cases a coming to market and enhancing the efficacy of legacy financial systems.

Despite its many applications, the original use case for Bitcoin (BTC) as a medium of exchange remains one of the most fundamental applications of blockchain technology and while BTC might not be the best asset to use for payments, there are service providers who have eased the process of settling transactions in other cryptocurrencies.

For now, the most widely accepted way to use cryptocurrencies for direct payments in everyday life is through the use of crypto debit cards which allow users to convert their crypto holdings into U.S. dollars. They essentially work in the same way that a prepaid debit does.

With institutions showing an increased interest in the growing cryptocurrency sector and mainstream awareness of blockchain technology at its highest level ever, crypto debits cards are increasing in prevalence as new players enter the field to try and capture a share in this growing market.

Three of the debit cards with a track record of success and attractive rewards are BitPay, Crypto.com and the Nexo Card.

Bitpay

The BitPay prepaid Mastercard has emerged as a top choice for many cryptocurrency holders thanks to its ease of use and low fees. It originally launched in 2016 as a US-only debit card and mainly functioned as a Bitcoin payments processor.

BitPay now supports eight different fiat currency options alongside support for Bitcoin, Ethereum (ETH), Gemini Dollar (GUSD), USD Coin (USDC), Paxos (PAX) and Bitcoin Cash (BCH).

Have you added your BitPay Card to @Apple Pay® yet? Easily make online and in-store purchases with crypto. #apple #applepay #bitpay #bitcoin #bitpaywallet #bitpaycard #crypto pic.twitter.com/hRp7nm6vDu
— BitPay (@BitPay) February 23, 2021

Users who wish to obtain the card must first pay a $9.95 activation fee and provide their social security and driver’s license number to gain access. Once approved, the user can load cryptocurrencies onto their BitPay wallet and then convert them to dollars to make them available on the card.

There are no transaction fees for users in the U.S., and the card has a daily spending limit of $10,000 with a maximum account balance of $25,000.

Crypto.com

For the ardent cryptocurrency fan, the Crypto.com debit card is one of the top choices due to the fact that it has a built-in native token called Crypto.com Coin (CRO) which functions as the primary currency and reward token for the blockchain.

Benefits of using the card include 100% cashback on popular streaming services like Netflix and Spotify as well as up to 8% cashback on regular purchases.

Crypto.com users can choose from a list of more than 100 of the top cryptocurrencies to fund their card by depositing them into their account and converting them into a stablecoin which is then loaded onto their debit card.

We’re excited to share news of a historic moment:https://t.co/vCNztABJoG & @Visa successfully conducted the first settlement of transactions using USDC!

A huge milestone for the industry as crypto and fiat networks begin to converge.https://t.co/v70qC8n4Yy
— Crypto.com (@cryptocom) March 29, 2021

The Crypto.com ecosystem offers five different Visa debit cards that have a tiered reward structure that increases depending on the amount of CRO that a user has staked in their account.

Tiers range from requiring a stake of 5,000 CRO for the Ruby Steel card, all the way up to needing 5 million staked CRO to obtain the Obsidian card which offers 8% cashback on all purchases. There is also a basic version of the card that doesn’t require any staking and offers 1% cashback on all purchases.

Nexo Card

A third choice that offers a different structure than most crypto debit cards is the Nexo Card and its native NEXO cryptocurrency which currently trades at $3.63.

Instead of requiring users to convert the cryptocurrency held into their accounts into U.S. dollars before use, Nexo issues an instantaneous loan based on the value of the cryptocurrency held in a users account and settles the transaction in fiat currency.

Want to #hodl your #crypto & spend at the same time?

Оur Instant Crypto Credit Line™ is just the thing for you.

Need more reasons? Check our blog post:https://t.co/uB0SkM4Qke
— Nexo (@NexoFinance) April 22, 2021

This allows users to access the value of their cryptocurrency assets without having to sell them. The loan can be repaid using either cryptocurrency or fiat through their Nexo account with the possibility of having the minimum payment paid off by the yield earned on a users staked cryptocurrency assets.

Interest rates for charges on the card are set at 5.9%, and there are no monthly or annual exchange fees. In addition to this, users receive 2% cash back in the form of Nexo tokens or BTC.

As more banks and institutions in the U.S. and around the world take a stake in the cryptocurrency sector in order to find ways to capitalize on the growing market, crypto debit cards are likely to become a more prominent fixture in legacy payment channels.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Visa, JPMorgan and ING discuss Bitcoin, Ether and stablecoin development

April 16, 2021 Coin Telegraph

Adoption

Forbes’ “2021 Blockchain 50 Symposium: Crypto Goes Corporate” event sheds light on Bitcoin’s role as an investment tool, along with the future of stablecoins.

If 2021 has taught us anything about digital currencies, it’s that big banks and major payments providers are now feeling more comfortable with Bitcoin (BTC). While the CEO of PayPal and other large corporations are expressing excitement for crypto payments and salaries paid in Bitcoin, executives from Visa, JPMorgan and ING all agree that Bitcoin is still an investment vehicle rather than a currency.

This notion was revealed during a panel discussion entitled “Buying with Bitcoin,” which took place during Forbes’ “2021 Blockchain 50 Symposium: Crypto Goes Corporate” online event. Michael del Castillo, associate editor at Forbes, led the discussion and was joined by Umar Farooq, CEO of JPMorgan’s blockchain unit Onyx; Mariana Gomez de la Villa, program director for distributed ledger technology at ING; and Cuy Sheffield, vice president and head of crypto at Visa.

Have Bitcoin payments advanced since 2014?

When panelists were asked whether or not anything has changed for Bitcoin payments since 2014, all three executives noted that the primary use case for Bitcoin is still as a store of value. Farooq pointed out that accessibility is the only major change Bitcoin payments have undergone since 2014:

“Square and PayPal, for instance, are enabling easier ways to utilize Bitcoin. Although, I think Bitcoin payments remain more as a marketing play for many large companies.”

While Farooq mentioned that consumers can certainly pay for items using Bitcoin, the volatility creates a major challenge. He further pointed out that tax implications create even more complications when it comes to crypto payments.

Sheffield noted that Visa is seeing growing demand from customers wanting to access Bitcoin, yet many still view the digital currency as more of a “savings account.” As such, Sheffield explained that Visa is currently focused on “stacking sats,” or allowing customers to acquire small units of Bitcoin overtime. “Companies like Fold are enabling customers to spend fiat and then earn Bitcoin back.This has been our primary motivation,” he remarked.

Echoing Farooq and Sheffield, Gomez de la Villa noted that Bitcoin remains an investment, primarily due to challenges such as ongoing high transaction fees. “I don’t think Bitcoin as a means of payment will be widely used right now,” she said.

JPM Coin is not a cryptocurrency

Given the sentiment expressed by all three panelists regarding Bitcoin payments, it shouldn’t come as a surprise that Farooq mentioned that JPM Coin — JPMorgan’s digital currency offering that was announced in 2019 — is not a cryptocurrency.

Rather, Farooq explained that JPM Coin was created specifically to meet the needs of JPMorgan’s Fortune 500 and Fortune 1000 corporate clients. “Our clients want access to programmable money, conditional payments and future capabilities. But they don’t care as much about being on a fully decentralized, public network with autonomy,” he said.

Farooq noted that JPM Coin provides corporations with the future capabilities of payments but acts more like a digitalized M1, or the money supply typically issued by banks. He said:

“It’s our point of view that corporations can come and interact on the platform to perform decentralized transactions across the broader ecosystem, allowing them access to programmable money. JPM Coin is not a pure cryptocurrency because, in my mind, a pure cryptocurrency is something with independent value on a public blockchain, like Bitcoin or Ether.”

In addition to JPM Coin, Farooq discussed the reasons behind the recent $65-million investment round in ConsenSys, which was led by major financial institutions including JPMorgan. According to the software company ConsenSys, the new funding will help expand its enterprise blockchain infrastructure solutions to enable more decentralized finance and Web 3.0 applications on Ethereum. Given this announcement, del Castillo asked Farooq if JPM Coin is a competitor to Ether (ETH).

According to Farooq, JPM Coin is not competing with Ether, noting that JPM Coin specifically caters to JPMorgan’s clients and not to retail investors. Farooq also mentioned that although JPMorgan built the Quorum platform on Ethereum, which has now become ConsenSys Quorum, the idea has been for those two platforms to merge to allow for JPMorgan’s blockchain solution to be built on the network that ConsenSys runs on. “We have a great relationship with ConsenSys and will continue to collaborate on the core technology with them,” Farooq said.

Stablecoins will enable new payment methods

When asked about the future of stablecoins, all three panelists agreed that stablecoins could be a useful tool for cross-border transactions, along with a solution that will enable fintechs and startups to build financial products upon.

Stablecoins have been of particular interest to Visa, as the major credit card provider recently announced a pilot program that will allow its partners to leverage the Ethereum blockchain to settle fiat transactions. According to an announcement from Visa, the company will be partnering with the crypto exchange and card issuer Crypto.com to provide a crypto settlement platform for fiat transactions later this year. This will enable Visa’s partners to exchange the stablecoin USD Coin (USDC) over Visa’s payment network to clear fiat transactions.

Sheffield noted that Visa has been following the stablecoin ecosystem closely over the past few years, with a special focus on USD Coin:

“We’ve been impressed and excited to see USD Coin and a developer ecosystem emerge around it. There is also an increasing number of fintech and crypto companies actually building their businesses on top of USDC.”

Sheffield mentioned that USD Coin is becoming a “crypto-native dollar-based treasury infrastructure,” noting that work is being done to ensure Visa acts as the bridge between USD Coin payments and innovative crypto companies.

In regards to cross-border transactions, Sheffield pointed out that stablecoins will enable new digital wallet products, followed by more efficient cross-border business-to-business payments leveraged by non-crypto companies. Echoing Sheffield, Farooq noted that stablecoins will help on the cross-border front but pointed out that regulations must first be in place:

“In the short term, stablecoins will act like money in your Apple Wallet — they will be used within closed ecosystems to create and generate value. But the long term depends on regulators becoming comfortable with cross-border payments at scale.”

Visa