Visa Cryptocurrency Partners

Visa to acquire cross-border payments fintech Currencycloud

Visa to acquire cross-border payments fintech Currencycloud
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Visa officially announced Thursday that it has signed a definitive agreement to acquire Currencycloud, a financial technology platform that supports nearly 500 banking and technology clients in more than 180 countries.

The new acquisition aims to improve and expand Visa’s foreign exchange business to serve financial institutions, fintech companies and partners. Colin Ostrovsky, the company’s global treasurer, said the deal would specifically improve the transparency and speed of Visa payments, noting:

“The acquisition of Currencycloud is another example of Visa’s implementation of our network of networks strategy to facilitate the global movement of money. Consumers and businesses increasingly expect transparency, speed, and simplicity when making or receiving international payments.”

The new acquisition builds on an existing strategic collaboration between the two companies, where Visa already owns a stake in Currencycloud worth $956 million, including cash and retention incentives. Last year, Visa participated in an $80 million funding round of Currencycloud along with investors such as Japanese financial group SBI Group.

According to the announcement, Currencycloud will maintain its operations from the company’s headquarters in London and retain its current management team. The acquisition is still subject to regulatory approval.

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The acquisition comes shortly after Currencycloud entered into a partnership with Ripple, the major cryptocurrency company behind the XRP token. Currencycloud officially announced its collaboration with Ripple in early July to explore new mechanisms for cross-border transactions, with a particular focus on jurisdictions where regulations restrict opportunities for small and medium-sized businesses.

A Visa spokesperson told Cointelegraph that the companies will continue to operate as separate entities until the closure. “It’s business as usual until then,” the actor stated.

The latest acquisition comes as Visa moves forward with its commitment to digital currency adoption, actively embracing both major cryptocurrencies such as Bitcoin (BTC) and crypto-pegged stablecoins. Last week, Visa agreed to issue a new Bitcoin debit card in Australia.