Binance nears full ownership of crypto card provider Swipe
Cryptocurrency exchange platform Binance is set to complete the purchase of digital wallet and crypto debit card company Swipe for an undisclosed amount.
Following the completion of the purchase of the remaining outstanding shares, Swipe CEO Joselito Lizarondo will step down and leave Binance.
The world’s largest digital asset exchange said the aim of full ownership is to help push the use of cryptocurrencies into the mainstream. It expects the deal to further encourage payments with cryptocurrencies through traditional financial systems such as debit cards.
“Binance and Swipe work with regulated and licensed entities to issue Visa cards, with Swipe acting as Binance’s card program manager and technology platform. Swipe also works with strategic partners to issue cards in permitted regions and markets,” Binance said.
Swipe is a UK-based platform that provides a banking account involving a multi-currency mobile wallet, the ability to buy and sell cryptocurrencies, access to exchanges with instant settlements, and a Visa debit card.
In Swipe’s existing markets, the company’s users are able to purchase cryptocurrencies from within the app, and the debit cards automatically convert stored coins into fiat currency, using the Visa payment network.
In 2020, the digital asset wallet and debit card platform has received the green light to launch its services in the US with plans to expand elsewhere in the country after receiving the regulatory sign-offs. After completing appropriate licensing and registrations, the company will open its real-time crypto-to-fiat conversions, debit card and issuance services, to potentially over 200 million adults in the USA.
Swipe launches in the US
Swipe is already available in 31 countries, mostly in the European Union, including countries like France, Germany, Italy, and Spain, among others.
Swipe’s offering has a received a big push after Binance’s cryptocurrency debit card debuted in Europe. Dubbed ‘Binance Card,’ it allows users to instantly convert the cryptos to fiat and spend them at over 60 million merchants across 200 regions and territories.
Swipe’s owner, Binance, also operates a crypto business dedicated to the US market. Binance.US originally entered the US market in late 2019 via a partnership with BAM Trading Services, a FinCEN-registered company, to roll out the new platform exclusively for customers based in the United States. Binance has licensed its matching engine and wallet technologies to its US partner, which handles operations compliant with local regulations.