In another blow to the troubled crypto industry, Visa and Mastercard have decided to shelve their plans to establish new partnerships with digital assets firms, Reuters reports.
The decision came after two major crypto firms, FTX and BlockFi, filed for bankruptcy, sending shockwaves throughout the industry.
As a result of these developments, the payment giants have postponed the launch of specific products and services related to cryptocurrencies until market conditions and regulatory environments improve.
The credit card companies had previously viewed cryptocurrencies as the next big thing in finance and had formed multiple partnerships with crypto firms.
Visa recently expanded its partnership with FTX, only to sever ties with the firm shortly thereafter. Meanwhile, Mastercard had become a trailblazer by launching the world's first crypto-backed payment card in collaboration with crypto lender Nexo.However, the U.S. regulatory landscape remains a treacherous sea full of unpredictable tides. Visa and Mastercard, once eager to ride the crypto wave, now find themselves navigating through choppy waters.
The industry's fluctuations have left them with no choice but to raise anchor and steer toward a safer harbor to reevaluate their strategies.