Upbit operator Dunamu has partnered with Visa to develop stablecoin payments and cross-border remittance services. The companies announced the partnership at Visa’s Global Market Support Center in San Francisco, and it covers AI-driven financial services.
The deal combines Dunamu’s digital asset technology with Visa’s global payment network. The plan includes Upbit’s existing custody, transfer, and anti-money-laundering tools.
Also Read: SpaceX Stock Rises as Musk Projects $3.5 Trillion Revenue by 2033
Dunamu, Visa Explore OUSD Payments and AI Commerce
Both firms will study stablecoin payments for international transfers, cross-border remittances, and settlement. The firms have not yet disclosed the structure of any planned service.
The partnership covers agentic commerce, where an AI agent searches for a product or service. The agent can then complete the purchase and payment for the user.
They will examine OUSD-based stablecoin payments models. Open Standard is developing the dollar-backed token, which has not launched.
The consortium includes Visa, Mastercard, BlackRock, Circle, and more than 140 other institutions. OUSD is designed as shared infrastructure with independent governance, unlike company-operated USDT and USDC.
With the new arrangement, most of the reserve will be returned to the institutions that provide OUSD. The OUSD will not collect any issuance or redemption fees.
Visa Advances Asian Stablecoin Partnerships With Shinhan
OUSD was one of the several stable coins reviewed by Dunamu. It was reported that a representative from the company said that they were neither prioritizing nor discarding any coin.
Previously, Dunamu and some other South Korean firms were mentioned as members of the partner consortium. However, they later denied having any formal deal to become partners.
Visa has been trying out stable coins through partnerships in Asia. On August 24, Visa signed an agreement with Shinhan Financial Group for testing issuance, remittance, and redemption.
This is Shinhan’s second stable coin partnership in four months. Visa also joined BLOOM, which is an initiative from the Monetary Authority of Singapore.
BLOOM links the existing payment systems with regulated stablecoin systems. Participating companies in the project included J.P. Morgan, DBS, and Circle.
Visa Reports $7B in Annualized Stablecoin Payments
According to Visa, stablecoin payments amounted to $7 billion in annualized settlement volume in April. Visa is also running pilots in nine blockchain networks and working with over 130 stablecoin-linked card programs.
Stablecoin card programs cover about 40 countries around the world. Nonetheless, Dunamu and Visa have not yet specified any target countries for the financial services being developed.
The project depends upon regulation of digital assets in South Korea. Currently, the Digital Asset Basic Act is awaiting approval in South Korea’s National Assembly.
The proposed rules can restrict the issuance of won-backed stable coins only to entities that have a minimum 51% share owned by commercial banks. The Bank of Korea has warned about risks from non-bank issuers.
A launch schedule has not been announced by the firms yet. Without the passing of the law and finalization of their business plans, it is uncertain when the payment services will be launched.
Also Read: SBI Holdings to Invest $270 Million for 20% Stake in Ajaib
Be the first to comment