Visa had earlier planned on launching a debit card program with FTX in 40 countries, however, following the recent saga with the exchange, the deal has been called off.
Due to FTX’s recent insolvency and bankruptcy troubles, Visa abruptly stopped the program just one month after the payments giant announced a collaboration with FTX to launch a debit card program in 40 countries globally.
Last week, Binance CEO Changpeng “CZ” Zhao declared that Binance would liquidate all of its FTX Token (FTT) holdings. This unintentionally sparked a bank run, which in turn caused FTX liquidity concerns.
The native cryptocurrency of the FTX trading platform, FTT, increased by roughly 7% in October as word of the relationship between FTX and Visa spread online, hitting a high of $25.62. Following the recent twist in the story, FTT is now trading at $1.89.
It is not surprising that organizations like Visa are trying to disassociate themselves from the discredited platform given how quickly things have spiraled for the once-reputable cryptocurrency exchange FTX.
“The situation with FTX is regrettable, and we are closely watching developments. Our emphasis on security and trust remains crucial in all of our endeavors, including those involving digital currency and beyond.
A Visa spokeswoman said, “We have ended our global partnerships with FTX, and their US debit card program is being shut down by their issuer.
Not just Visa but other companies are cutting relations with FTX. On November 11, the Securities and Exchange Commission of Cyprus, or CySEC, reportedly requested that the exchange cease operations for its European subsidiary following FTX’s filing for Chapter 11 bankruptcy in the United States.
Another case involved the suspension of FTX US’s access to its products by Plaid, a fintech business that enables the communication between financial services applications and users’ banks and credit card providers, citing “concerning public reports” of fraudulent conduct.
