Visa has partnered with Coinbase to enable instant deposits for Visa debit card users, allowing real-time cryptocurrency purchases.
Key Points
- The Visa-Coinbase collaboration will grant 24/7 access to crypto trading, bypassing traditional payment limitations.
- Visa is also exploring new areas within stablecoins and asset tokenization.
- As Coinbase prepares to release its Q3 earnings, analysts project an EPS of $0.41 and revenue of $1.25 billion.
In a recent announcement, Visa revealed a new partnership with Coinbase that facilitates real-time payments. This development allows Visa debit cardholders to instantly deposit funds into their Coinbase accounts, enabling real-time crypto purchases and helping to reduce exposure to crypto market volatility.
Real-Time Crypto Transactions with Visa and Coinbase
Alongside Visa, Coinbase is expanding real-time payment capabilities for customers in the US and Europe by leveraging its existing debit card connections. Additionally, Visa has broadened its crypto payment reach globally through partnerships, including one with Singapore’s dtcpay.
Previously supporting the Coinbase debit card, Visa’s new collaboration allows other Visa debit cardholders to make immediate crypto purchases and transfer funds to bank accounts directly via the card, offering continuous 24/7 trading access.
Historically, traditional banking and payment systems posed challenges to the digital asset sector, primarily due to unclear regulations and concerns over market volatility. With evolving crypto regulations globally—and potentially in the US with future legislative changes—this gap may soon narrow. Yanilsa Gonzalez Ore, Visa Direct’s North America head, emphasized that this partnership lets users “take advantage of trading opportunities day and night.”
Visa is also exploring stablecoin and asset tokenization opportunities, recently collaborating with Spanish bank BBVA to launch the Visa Tokenized Asset Platform (VTAP), supporting fiat-backed stablecoin experimentation.
Earnings Report on the Horizon
Coinbase is set to announce its Q3 earnings on October 30, with expectations for an EPS of $0.41 and revenue of $1.25 billion. This comes as Bitcoin nears an all-time high. Coinbase’s stock, up 40% year-to-date, remains 30% below its IPO price from 2021, yet it’s significantly recovered from its December 2022 lows of $35. A supportive crypto market could push Coinbase stock near its all-time highs over the next year.
Coinbase has also recently engaged in regulatory challenges with the SEC. CEO Brian Armstrong called for an apology and retraction of “frivolous cases” from the next SEC chair, asserting it would help restore public trust in the institution.
