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Visa has terminated its relationship with the defunct cryptocurrency exchange FTX, the payments industry major announced on Sunday.
FTX-branded Visa debit cards will no longer be available as the much-touted relationship, which was expanded last month, will come to an end, the company announced.
A Visa spokesman added that "It was terrible that FTX has a problem, and we are constantly watching developments. They are no longer part of Visa's global agreements, and their issuer is discontinuing its US debit card business."
The FTX Group some days ago filed for chapter 11 bankruptcy, which includes the FTX.com business as well as FTX US, Alameda Research, and "about 130 additional connected entities." In contrast to chapter 7 bankruptcy proceedings, which only liquidate assets, chapter 11 bankruptcy proceedings are undertaken when the firm hopes or anticipates being able to restructure its operations.
As part of a "long-term worldwide cooperation" established by the two businesses in early October, the cards were scheduled to be sent to 40 more countries in addition to the U.S., where they had previously been available to FTX account users.
At the time, Cuy Sheffield, head of crypto at Visa, stated that the payments company will "bring more flexibility and ease-of-use to the way customers utilize their crypto" by collaborating with "leading crypto exchanges like FTX."
Users may convert their cryptocurrency balances to pay for goods and services using debit cards that were directly linked to the account owner's FTX account.
Visa had earlier indicated that it was considering developing a crypto wallet and a metaverse product by filing fresh trademark applications in October.