Traditional payment giants deepen encryption layout, opening up on-chain coin purchase channels

Traditional financial institutions are accelerating their entry into the encryption field. Recently, a well-known payment company announced that it will provide on-chain cryptocurrency purchase services, further promoting the mainstreaming process of encryption payments.

In fact, this payment giant has been continuously deepening its encryption strategy in recent years, moving from experimental exploration to actual implementation, becoming a key part of its global financial landscape.

Direct Card Purchases of Encryption Currency? Payment Giants Open Up On-Chain Deposit Channels

Recently, the payment company officially announced a strategic partnership with a blockchain technology company, which will allow over 3 billion cardholders worldwide to purchase encryption currencies directly on-chain using credit cards. This is not only another significant move for the company in the encryption field but also achieves a deep integration of traditional financial networks and DeFi core components in the fiat currency deposit path, potentially opening a new channel for the large-scale popularization of on-chain finance.

According to the introduction, in this service system, users do not need to register a centralized exchange account or go through the complicated on-chain bridging process. They just need to initiate a transaction request through a decentralized trading platform that integrates this function to purchase encryption assets using a credit card.

The entire process involves multi-party collaboration: decentralized trading platforms serve as the user front-end entry point, supporting the initiation of credit card payment instructions; traditional payment gateway service providers offer seamless card payment processing, verifying and handling users' fiat currency payments; encryption currency and stablecoin infrastructure providers are responsible for converting users' fiat currency into encryption currency, ensuring compliance, providing liquidity, and on-chain services; decentralized oracle networks and interoperability standards ensure the security of on-chain transactions and the reliability of data.

In the end, encryption assets will be directly sent to the user's on-chain wallet address through smart contracts, and the entire process does not require knowledge of trading pairs, Gas fees, or slippage parameters, nor does it require switching to a centralized trading platform.

In recent years, traditional payment companies have mostly focused their collaborations in the cryptocurrency space on the consumer end, specifically by allowing users to spend coins through crypto debit cards, which automatically convert their held digital assets into fiat currency in the background for everyday payments.

However, this collaboration is no longer about using on-chain assets for real-world consumption, but rather directly opening a channel for fiat deposits into on-chain assets, allowing non-encryption native users to simply swipe their cards as if shopping online to obtain on-chain assets, without needing to understand any DeFi concepts, and in a compliant and transparent manner. This not only breaks down the long-standing barriers for DeFi users in funding, but also provides a compliant, secure, and controllable on-chain channel for the traditional financial system.

The Executive Vice President of the payment company's blockchain and digital assets stated, "People want to easily connect to the digital asset ecosystem and vice versa. This is precisely why we are continuously leveraging our global payment network and mature experience to bridge the gap between on-chain business and off-chain transactions. Through this collaboration, we are unlocking a secure and innovative way to fundamentally transform on-chain business and drive broader adoption of encryption assets."

The co-founder of the partner also pointed out, "This is a typical case of the integration of traditional finance and decentralized finance. I am very excited to be able to drive this key connection from traditional payment networks to the on-chain transaction environment. This is a complex and multi-layered collaboration, and I feel very delighted."

Stimulating New Business Models with Encryption, Focusing on Three Key Areas This Year

"The key issue hindering the mainstream adoption of cryptocurrency is that users find it difficult to identify and transfer funds to each other through familiar methods. Our goal is to serve as a connector between traditional finance and blockchain networks, stimulating new business models while ensuring compliance." The head of encryption and blockchain business at the payment company recently pointed out that the company has now transitioned from the experimental phase to providing practical encryption solutions.

In fact, unlike many traditional financial institutions that still regard encryption as a fringe area or regulatory risk, the company is deeply advancing its layout in the encryption field, gradually integrating crypto assets, stablecoins, and tokenized assets into the daily payment experience.

According to a report submitted by the company to the US SEC in February this year, significant progress has been made in achieving the goal of an "innovative payment ecosystem," including tokenization of transactions, creating solutions to unlock blockchain-based business models, and simplifying access to digital assets. Meanwhile, the document clearly states that digital currency has the potential to disrupt traditional financial markets and may directly challenge its existing products. With the accessibility, immutability, and efficiency of digital assets, stablecoins and encryption may become more popular as they are regulated, becoming competitors in the payment industry.

Before card-based coin purchases became a reality, the company had been promoting the commercialization of encryption payments, collaborating with multiple encryption companies to launch co-branded encryption debit cards, allowing cardholders to directly use cryptocurrency for consumption, with automatic fiat currency conversion in the background.

Moreover, during the layout of encryption payments, stablecoins are also becoming the strategic hub for the company’s on-chain settlement. The company recently joined a stablecoin alliance initiated by multiple institutions, allowing for the co-minting and sharing of interest earnings from stablecoins pegged to U.S. Treasury bonds. At the same time, it will support multiple stablecoins and integrate them into its own cross-border payment network; it recently announced a partnership with an encryption payment company to launch a new stablecoin payment card, supporting users to make stablecoin payments at over 150 million merchants worldwide, with transactions automatically converted into fiat currency; additionally, it has collaborated with multiple companies to launch a comprehensive stablecoin payment solution, enabling merchants to soon complete transaction settlements directly using stablecoins, including USDC.

These intensive actions indicate that the company is integrating stablecoins into users' daily consumption, settlement, and transfer activities. To enhance the security and user-friendliness of cryptocurrency transactions, the company previously launched encryption credentials, which reduce the possibility of errors during cryptocurrency transfers by replacing complex wallet addresses with easy-to-use aliases.

In addition to stablecoins, the company is also vigorously promoting the construction of asset tokenization. In April of this year, the company revealed that it is developing a multi-token network aimed at replicating its traditional payment network to provide digital asset trading infrastructure for consumers, merchants, and financial institutions. This system will integrate on-chain and off-chain asset flows, ensuring compliance and optimizing user experience. The company has collaborated with multiple financial institutions to explore scenarios such as cross-border payments and carbon credit tokenization, and has applied for over 250 blockchain-related patents since 2015.

"We believe that the future financial system will include both bank deposits and stablecoins. Deposits are the foundation of funds, while stablecoins provide efficient on-chain settlement capabilities. If there can be more regulatory clarity in the future, allowing deposits to be represented in some form on public chains, this will be key to the large-scale expansion of tokenization." In an interview months ago, company executives revealed that they have set their 2025 strategic focus on three main areas: on-chain/off-chain deposits and withdrawals, promotion of encryption certificates, and applications of stablecoins. Currently, they support financial institutions in using stablecoins for transaction settlements and plan to announce more partnerships and application scenarios this year to continue advancing the integration of encryption.

In the accelerating process of integration between traditional financial institutions and the encryption sector, this payment giant is breaking through in three major areas, building its own encryption business landscape.