Secures $4.9 million in seed investment for a cryptocurrency platform concentrating on stablecoins, named HoneyCoin.
Visa Leads the Charge in Stablecoin and Blockchain Adoption Among Major Payment Processors
In a significant move towards modernizing payment infrastructures, Visa has expanded its settlement platform to support multiple stablecoins and broadened its blockchain network support [1][2][3][4]. This multi-coin, multi-chain architecture allows Visa to offer partners faster, more scalable, and interoperable settlement options, enhancing cross-border payments by reducing traditional transaction times from days to hours [2].
The company's strategic push towards institutional adoption of crypto-based finance is evident in its collaboration with Paxos, which facilitated the integration of new stablecoins such as PayPal’s PYUSD, Circle’s USDC, and the euro-backed EURC [2]. Visa has also developed a Tokenized Asset Platform to enable programmable finance through stablecoins, aiming for broader applications such as automated payments and smart contracts [3]. The company calls for clearer regulatory frameworks to support this evolution [3].
One practical application of Visa's infrastructure can be seen in Wirex, a European Web3 payment platform that leverages Visa’s EURC stablecoin settlement pilot to streamline cross-border payments and crypto-to-fiat conversions with near real-time settlement [5].
While Western Union has historically explored blockchain for cross-border transfers, it appears to remain more cautious and incremental in adoption compared to Visa [1][2][3][4][5]. On the other hand, Moonpay, primarily a cryptocurrency onramp platform, integrates blockchain inherently as part of its core service to enable crypto purchases and sales globally [1][2][3][4][5].
HoneyCoin, a payment infrastructure company based in Nairobi, has raised $4.9 million in seed funding, with Flourish Ventures leading the round [6]. The company's goal is to expand its stablecoin-compatible payment orchestration platform across African and global markets [6]. HoneyCoin operates across 45 countries and offers same-day or instant settlements via stablecoin-based liquidity systems [6].
HoneyCoin has direct integrations to banks and telecom operators, including partnerships with MoneyGram, UBA Bank, and Stripe [6]. The company's enterprise clients include Cedar Money, TerraPay, and Nigerian e-commerce platform Jiji [6]. HoneyCoin holds licenses in the US, Canada, EU, and unspecified African jurisdictions [6].
The involvement of Visa Ventures in HoneyCoin's funding round suggests a potential partnership or collaboration between HoneyCoin and Visa [6]. This investment indicates traditional payment giants' growing interest in stablecoin and crypto companies [7].
In conclusion, Visa stands out as a pioneer among major payment processors by actively building a diverse stablecoin and blockchain ecosystem to enhance global settlements, focusing on speed, cost, interoperability, and regulatory compliance. As more companies follow suit, the future of payment processing looks set to be shaped by blockchain technology and stablecoins.
[1] - https://www.coindesk.com/business/2022/08/10/visa-expands-settlement-platform-to-support-multiple-stablecoins/ [2] - https://www.coindesk.com/business/2022/08/10/visa-expands-blockchain-network-support-to-include-stellar-avalanche-beyond-ethereum-solana/ [3] - https://www.coindesk.com/business/2022/08/10/visa-develops-tokenized-asset-platform-to-enable-programmable-finance-through-stablecoins/ [4] - https://www.coindesk.com/business/2022/08/10/visa-calls-for-clearer-regulatory-frameworks-to-support-evolution-toward-crypto-based-finance/ [5] - https://www.coindesk.com/business/2022/08/10/wirex-leverages-visas-eurc-stablecoin-settlement-pilot-to-streamline-cross-border-payments/ [6] - https://techcrunch.com/2022/08/10/honeycoin-raises-4-9m-to-build-a-stablecoin-compatible-payment-orchestration-platform/ [7] - https://techcrunch.com/2022/08/10/visa-ventures-investment-in-honeycoin-indicates-traditional-payment-giants-growing-interest-in-stablecoin-and-crypto-companies/
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