Financial services giant Visa sees generating yield from self-custodial digital assets as a growing market opportunity.
Through new generation credit programs and on-chain finance protocols, Users can maintain sovereignty over their assets while accessing liquidity.
In the latest financial report On-chainIn this article, produced in collaboration with analytics firm Allium, Visa highlights how users of self-custody wallets such as Ledger and Trust Wallets are already participating in the global lending market.
According to the document, protocols like Morpho can help “replace traditional networks of bilateral or tripartite lending relationships with a single multilateral lending market.” As reported by CriptoNoticias yesterday, this decentralized finance (DeFi) protocol recently received financial backing from the Ethereum Foundation.
This financing modelConnect liquidity in a decentralized way. Increase efficiency and interest rates Regarding traditional systems.
Integrating these services directly into the wallet app is important because “providing financial services within the app reduces the reason for users to move their assets elsewhere, allowing them to borrow rather than sell.”
Looking ahead, the report notes that “credit card programs could soon expand to include digital asset collateral, opening up new market opportunities.”
The initial program already allows users to “borrow against their digital asset holdings to access liquidity, avoid capital gains taxes, and preserve potential appreciation risk while retaining ownership of their digital assets.”
In Visa’s opinion, This infrastructure not only benefits retail users. “We create new revenue opportunities for institutional investors while mitigating risk for counterparties through transparent and automated collateral management.” Banks and credit funds may act as liquidity providers for these innovative credit programs.
(Tag translation) Cryptocurrency
