Visa and FTX part ways, bringing the debit card partnership to an end

    TheMorningCrypto Desk
    TheMorningCrypto Desk
    Published on November 15, 2022 6:34 PM

    Updated on January 9, 2023 12:51 PM

    Only one month after the payments giant Visa established an alliance with FTX to launch a debit card programme in 40 nations across the world, Visa suddenly cancelled the partnership.
    Visa and FTX part ways, bringing the debit card partnership to an end
    Source: Coinbold

    Early in October, the world's largest payment processor Visa and the collapsed cryptocurrency exchange, FTX, announced an extended partnership that included intentions to roll out account-linked Visa debit cards in 40 different nations.

    Due to FTX's recent financial struggles, Visa promptly canceled the partnership a month after this announcement. The native cryptocurrency of the FTX trading platform, FTT, increased by roughly 7% as word of the agreement between FTX and Visa spread online last month, hitting a high of $25.62. FTT is presently trading at $1.89 following the recent change in circumstances.

    We've seen just how rapidly the once-reputable cryptocurrency exchange FTX has gone downhill, so it's no wonder that businesses like Visa are trying to disassociate themselves from the discredited site.

    FTX's liquidity troubles were mainly created last week when Binance's CEO declared that Binance would sell the totality of its FTX Token (FTT) holdings, thus causing a bank run and causing FTX liquidity concerns.

    Read more content related to the FTX collapse here. 

    Not just Visa but other companies are breaking connections with FTX. Plaid, a fintech business that helps connect customers' banks and credit card companies with financial services applications, has blocked FTX US's access to its products due to "concerning public claims" of fraudulent conduct and additional evidence provided by FTX.

    FTX previously announced that it would declare bankruptcy on behalf of, FTX U.S., Bankman-Fried's trading company Alameda Research, as well as over 130 other linked firms. As a result, FTX essentially abandoned its own related enterprises.

    On November 11, during FTX's declaration for Chapter 11 bankruptcy in the United States, the Securities and Exchange Commission of Cyprus, or CySEC, allegedly issued a statement urging the exchange to suspend operations for its Europe subsidiary.

    As reported earlier, there are over 1 billion Visa cards in circulation worldwide. The company has also collaborated with cryptocurrency businesses to provide credit and debit cards linked to cryptocurrency payments. Moreover, Visa had partnerships with a number of cryptocurrency exchanges, including the collapsed FTX.