Visa, the global payments giant, has announced a strategic partnership with WeFi, a blockchain infrastructure company co-founded by Tether co-founder Reeve Collins, to build on-chain banking services. The initiative aims to bridge decentralized finance (DeFi) with traditional payment networks, targeting the 'last half mile' of on-chain banking.
WeFi, founded in 2020 by Reeve Collins, is a platform that connects DeFi protocols with institutional payment networks. The company has developed a system that allows users to hold and transact in both fiat and cryptocurrencies seamlessly. Visa brings its global payment network, regulatory expertise, and merchant relationships to the table. Together, they aim to create a hybrid banking model that combines the speed and transparency of blockchain with the trust and familiarity of traditional banking.
The partnership will provide users with personal International Bank Account Numbers (IBANs) that can receive and send payments in multiple currencies, including cryptocurrencies. These IBANs will be linked to Visa's payment network, allowing users to spend their crypto holdings at any merchant that accepts Visa. WeFi's platform will handle the conversion between fiat and crypto, using smart contracts to ensure security and compliance. The service will be regulated under existing financial laws in each jurisdiction, addressing one of the biggest barriers to crypto adoption.
Key features of the service include multi-currency support in USD, EUR, GBP, and major cryptocurrencies, instant settlements on-chain in under 10 minutes, low transaction costs, and regulatory compliance with KYC/AML regulations in all operating regions. WeFi's technology stack includes smart contract-based escrow, automated market making, multi-signature wallets, and compliance modules that integrate with global databases.
The service will launch initially in Europe, Asia, and South America—three key regions with progressive crypto regulations and high smartphone penetration. Europe benefits from the MiCA regulatory framework, Asia from progressive hubs like Singapore and Hong Kong, and South America from high inflation rates making crypto an attractive store of value. After establishing a foothold, the partnership plans to expand to Africa, Southeast Asia, and other regions with significant unbanked populations.
Industry Context and Reactions
This partnership is not Visa's first venture into blockchain technology, which it has been experimenting with since 2015, but represents a more concrete step toward mainstream adoption. Targeting the approximately 1.4 billion unbanked adults globally, many of whom have smartphones but lack traditional banking access, on-chain banking can provide a low-cost, accessible alternative. Mathieu Altwegg, Visa's Head of Product and Solutions in Europe, highlighted that the partnership shows how Visa's global network can work alongside blockchain-based financial systems while staying within established regulatory standards. The companies did not disclose financial terms of the deal.
Regulatory Approach and Risk Management
One of the biggest challenges for on-chain banking is regulation. Visa and WeFi are taking a proactive approach by working with regulators in each target market. In Europe, the service will comply with MiCA; in Asia, it will adhere to local licensing requirements; in South America, it will navigate varying regulatory landscapes. The partnership also addresses key risks: users can choose stablecoins or convert to fiat instantly to manage volatility, multi-signature wallets and insurance coverage protect against hacks, and automated monitoring ensures compliance with anti-money laundering rules.
Industry Comparison
While Mastercard and JPMorgan have pursued their own crypto initiatives, the Visa-WeFi partnership is unique in its focus on providing personal IBANs to individual users rather than just institutional clients, potentially giving it a competitive edge in the consumer market.
