Visa enters the Crypto Assets field, promoting industry development

Global payment giant Visa recently announced a significant breakthrough: successfully completing transaction settlements on the Visa network using the USDC stablecoin backed by the US dollar through the Ethereum network. This innovative initiative tightly connects Crypto Assets with the traditional fiat currency world.

After the news was released, the price of Bitcoin quickly rose, breaking through the $59,000 mark, with an increase of more than 8%.

Visa has announced that it has launched a pilot program with a certain payment and encryption platform, with plans to offer this option to more partners later this year. Reports suggest that this initiative will enable 61 million customers on the Visa network to make payments using Crypto Assets.

Supporting digital currency as a new settlement method marks an important step forward in Visa's "network of networks" strategy. This strategy aims to strengthen all forms of fund flows both within and outside the Visa network. Visa is committed to adding value to the ecosystem through its global influence, partnerships, and brand reputation, making Crypto Assets safer, more practical, and better suited for payment scenarios.

Institutions Compete to Lay Out Crypto Assets

Since last year, many institutions have begun to layout the Bitcoin and Crypto Assets field. Visa's entry has also been influenced by this broader environment to some extent.

Before Visa, another mainstream payment platform had taken the lead in expressing support for the buying and selling of Bitcoin and other crypto assets, as well as payment services. The head of this platform even filmed a video demonstrating the process of purchasing jeans using Bitcoin. Such platforms hold a position in the overseas payment sector comparable to that of Alipay in the domestic market. The ability to directly purchase crypto assets or use them for payments on such a large platform will undoubtedly bring significant traffic and positive impact to the crypto asset field.

The chairman of a space company tweeted after the announcement of this news: "After the payment platform announced support for Bitcoin, major banks are discussing how to support Bitcoin; this is no longer an option."

A certain investment fund known as "the Pi Xiu of the coin circle" has increased its investment efforts this year. As of now, the number of bitcoins held by this fund has reached 650,000 coins, making it the largest coin holder institution in the world. Its investment model dictates that it can only continuously buy and cannot sell, which to some extent alleviates market concerns about large sell-offs.

In addition to institutions providing investment access, there are companies that regard Bitcoin as a strategic reserve asset. A certain technology company has become the world's first publicly traded company to officially incorporate Bitcoin into its corporate strategic reserves, having purchased over 20,000 coins and continuously seeking accumulation opportunities at various price levels. The company's founder has also long begun to accumulate Bitcoin, currently holding more than 10,000 coins.

Under the influence of this company, other large companies have also begun to accumulate Bitcoin one after another. A certain mobile payment giant invested $50 million to purchase approximately 4,709 Bitcoins as reserve assets. A certain asset management company also purchased $114 million worth of Bitcoin as part of its asset reserve strategy.

In February this year, a well-known electric vehicle manufacturer announced a $1.5 billion investment in purchasing Bitcoin and stated that it would soon support the use of Bitcoin to purchase its products. This news triggered a strong market reaction, with the price of Bitcoin rising nearly 14% within an hour, reaching a peak of $44,195.

Even traditional financial analysts who have consistently criticized Bitcoin and Crypto Assets are starting to change their stance, with some even predicting that the price of Bitcoin will reach $400,000 in the 2021 bull market.

Crypto Assets Go Mainstream

With the push of many institutions, Crypto Assets were no longer seen as an alternative market in 2021, and more and more institutions and investors began to pay attention to the blockchain and Crypto Assets field.

The wave of institutional entry may bring the following impacts:

1. Promote industry compliance and integrate into mainstream society. With major institutions entering the market en masse, the market capitalization of Bitcoin has exceeded one trillion USD, and the global influence of the Crypto Assets market has changed dramatically. This compels regulatory agencies to actively respond, formulating relevant laws and regulations to promote the industry's compliance. Some countries have begun to explore the integration of Crypto Assets with the traditional financial world at the regulatory level, rather than outright rejection. This will provide more policy support for industry development and push the Crypto world into a new phase of standardization and mainstream acceptance.

2. Expand market consensus and attract more investors. As more institutions and corporate platforms support the use of Crypto Assets for settlement or payment, an increasing number of users have the opportunity to engage with Crypto Assets and recognize their value and advantages. This will gradually change people's attitudes, encouraging more individuals to delve into the operational mechanisms of Bitcoin and the Crypto Assets market, ultimately transforming from onlookers to true Crypto Assets investors.

3. Enhance investor confidence and lead to a super bull market. Large institutions have significant capital and long investment horizons, primarily valuing Bitcoin's anti-inflation and value storage appreciation functions, and they will not sell easily. As more and more institutions begin to hoard Bitcoin, it will continuously stimulate investor enthusiasm, strengthen market confidence, and trigger a sustained upward trend. This is also why the bull market in 2021 is considered to have shifted from retail-driven to institution-driven.

Seize the Opportunity

Any great new thing faces doubts and criticism in its early development because its existence is out of sync with the times. However, they represent the future and a new trend in historical development.

Bitcoin is such a controversial new entity that has received much attention since its inception. After eleven years of development, despite being suppressed and blocked multiple times, it still stands strong, and instead, it increasingly showcases its vitality and value.

In the upcoming digital economy era, digital assets will become a necessity in everyone's daily life, and allocating quality digital assets will also become a required course for every investor.

As more and more institutions and even sovereign countries begin to lay out their strategies for Bitcoin, this market will gradually mature and stabilize. As a relatively early participant, now is a great time to seize the opportunity.