Switzerland-based cryptocurrency wallet maker Tangem AG has launched a payments partnership with Visa.

The collaboration, announced Friday (July 5), has resulted in a Visa payments card combined with a hardware wallet that lets Tangem users make payments using their crypto or stablecoin balances at merchants that accept Visa.

“We are delighted that Visa has chosen to partner with Tangem, one of the most reliable and secure solutions for personal cryptocurrency storage,” Andrey Kurennykh, co-founder and CEO of Tangem, said in a news release.

“Our users will get a two-in-one solution — the convenience of a regular bank card and the capabilities of a self-custodial crypto wallet, all in one card.”

Kurennykh added that the partnership will go a long way toward “bridging the gap between traditional banking and digital assets, making it easier for everyday users to navigate and leverage the benefits of both worlds.”

According to the release, the new solution differs from traditional custodial solutions, which rely on third-party entities to handle user funds. In this case, Tangem’s card embeds a private key within the chip and requires the physical card’s use for every transaction, making sure users are always in control of their assets.

The partnership is happening a moment when, as PYMNTS wrote earlier this week, the cryptocurrency and blockchain sector finds itself at a crucial juncture.

“It is the same critical juncture, or at least one strikingly similar, that the crypto and digital asset sector has always found itself at — a juncture where regulatory developments, interoperability and scalability, and institutional acceptance are at the forefront,” that report said.

The reason? Regulations, usability and acceptance are the three themes and trends observers believe will mold the future of Web3, a future that’s more than a decade in the works.

While the adoption of crypto as a mainstream payment mechanism has yet to displace more traditional methods in spite of the rise of digital transactions, crypto has still seen some success as a financial asset, that report argued.

One of the most pressing issues facing the space is a need for clear regulation to protect consumers, prevent fraud and drive institutional investment.

Taming the “Wild West” that is the crypto landscape remains a challenge, the report noted. This week began with the Securities and Exchange Commission accusing Silvergate Capital, once a favorite partner of the crypto industry, with a range of compliance failures.

The revenue in the UAE’s crypto sector is expected to grow by 7.89 percent year-on-year (YoY) to $395.80 million by 2028, up from $292.10 million in 2024, according to fintech company Bitpanda.

Bitpanda, a Europe-based prominent crypto platform and infrastructure provider, recently entered the UAE to boost regional expansion, according to a statement. Walid BenOthman, managing director of Bitpanda, oversees the company’s operations in the UAE and the wider region, highlighting the factors contributing to the country’s surge in cryptocurrency adoption.

UAE’s diversification efforts and crypto integration

BenOthman indicated that the UAE’s long-standing goal to diversify away from oil has been reinforced by various mandates across several industries to ensure Sheikh Mohammed’s vision of future-proofing the nation is realized. He added that crypto has increasingly become a part of this journey, with the UAE recognizing the enormous potential it holds not only regionally but also globally.

The Managing Director highlighted that by initiating strategies to integrate crypto as a mainstay within its borders, the country is ushering in a new era to become a leading crypto hub worldwide.

Read more: Crypto firm Ripple to launch U.S. dollar stablecoin, targeting $150 billion market

Crypto adoption in the Middle East

While crypto adoption in the Middle East currently represents a 10 percent rate, recent data indicates this trend will not persist.

Bitget Research underlined that the average daily number of crypto traders in the region exceeded 500,000 in February, reflecting a 51 percent YoY growth from 2023. During this period, the UAE boosted regional growth by leading crypto adoption per capita with a 68 percent YoY leap in daily traders.

After achieving a record-setting revenue of AED400 million in the first quarter (Q1) of 2024, Bitpanda has since reached a new milestone of 5 million total users as of Q2. Moreover, the company, Bitpanda MENA, is now set to anchor the UAE’s diversification efforts by unlocking digital assets for millions of investors.

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