Visa and Mastercard have reportedly put aside their plans toward the crypto industry due to the market downturn that heightened with crypto exchange FTX's collapse in 2022.
The U.S.-based payments processing giants will launch certain crypto-related goods and services once the market conditions and the regulatory environment improve.
As part of the decision, the two have halted new partnerships with crypto firms, according to sources who spoke to Reuters.
- A spokesperson for Visa said recent high-profile failures in the crypto industry reminded them there is a long way to go before crypto becomes mainstream in payments and financial services.
- The spokesperson also added that Visa's crypto plans remain the same.
- Mastercard's spokesperson similarly commented on the claims, saying they still focus on underlying blockchain technology and the possible use cases to address current problems and create more efficient systems.
- Investment firm Great Hill Capital's chairman Thomas Hayes also said the payments giants should not proceed until there is a clear regulatory framework.
Over the last few months, Mastercard partnered with many crypto-related firms, including Immersve, Nexo, Binance, and BitOasis, as the market hit massive popularity.
- Similar collaborations came from Visa with firms like Wirex, Blockchain.com, and FTX.
