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Both companies will explore opportunities to drive financial management across markets where yellow cards are regulated and adoption of stubcoin in cross-border payments.
Global payment and card infrastructure company Visa has announced that it will partner with Pan-African cryptocurrency exchange and payment platform Yellow Card to expand its Stubcoin settlement solution to Africa.
The partnership aims to test opportunities for integration between the exchange's Stubcoinbase cross-border infrastructure and Visa Direct, a visa payment product.
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In a press release announcing the partnership, Visa said it plans to explore stability opportunities in the African financial environment, particularly in markets where yellow cards are licensed. Additionally, the companies will explore opportunities in the stubcoin market in financial operations and liquidity management. Reports say the Yellow Card will debut Stablecoin products with visas in at least one African country.
I'll dive deeper
Gillian Darko, staff chief and strategy director for Yellow Card, said in a call with Mariblock that companies integrated with Visa will be able to use Stablecoins courtesy of the partnership. She said,
“Very simply, companies, businesses and some partners will be able to use stubcoin if they are connected to a visa… Companies can maintain USD liquidity in the form of Stablecoin, reducing Forex risk and transaction lag.
Essentially, Visa plans to expand its Stablecoin offering in Africa by leveraging the existing infrastructure of yellow cards, starting from markets where Pan-Africa exchanges are licensed. This integration of proportions combines the “size of Visa with the regional strength of yellow cards” to promote the adoption of Stablecoin in Africa, Darko added. The exchange is currently active in 20 African countries, but has been approved in three parts of Botswana, South Africa and Zambia in the process of obtaining operational licenses in other countries such as Ghana and Nigeria. Visa and Yellow Card also plan to pilot and scale Stablecoin products in these licensed markets. Darko said,
“We've been in the market for quite some time (and we) have leverage there. (Visa) now supports a variety of stubcoins, so we use yellow card support.
She added that Visa has already led Stablecoin trading to a hundred million dollars worldwide, but plans to use Yellow Card's established payment network to test stubcoins in the African market.
Why is this important?
Global companies seeking to expand to other markets often need to go through several regulatory hoops, documents and licensing processes before offering their products in these new markets. As a result, global companies often skip certain markets or offer limited services, but many choose to partner with local businesses. These local partners have a deep understanding of the market and are already regulated, making global companies navigating compliance, reducing costs and expanding more easily.
