Rain and Visa Collaborate to Transform Onchain Credit Card Connectivity
In a groundbreaking initiative that could reshape the landscape of digital finance, Rain, a leading platform focused on issuing credit cards backed by stablecoins, has partnered with Visa to pioneer onchain financial transactions. This collaboration signifies a leap into a new era, where traditional banking practices can be enhanced and simplified through innovative technologies.
Founded in 2021 by Farooq Malik and Charles Naut, Rain has been at the forefront of integrating stablecoins into everyday financial transactions. By leveraging Visa's extensive network, Rain now positions itself to allow consumers and businesses easy access to onchain payments. The partnership kicks off with Rain's inclusion in Visa's pilot program designed for stablecoin settlement, marking a significant milestone for both companies.
One of the most noteworthy advancements from this partnership is Rain's complete tokenization of credit card receivables. By transitioning all transaction settlements for Visa cards to USDC (a prominent stablecoin), Rain enables real-time settlements every single day of the year, effectively optimizing cash flow for users and reducing reliance on traditional banking schedules. This means users can efficiently conduct transactions without the usual restrictions that banking hours impose, thereby enhancing liquidity and promoting a more dynamic marketplace.
Rain's technology stack offers a backend infrastructure characterized by APIs and compliance specifications that facilitate seamless integration with existing fintech solutions. This infrastructure supports a variety of financial applications, helping fintechs easily create and launch their own programs centered around stablecoin-linked cards. As the demand for quick and global transactions rises, Rain has experienced a surge in interest from partners eager to explore onchain card solutions.
The company has introduced an innovative settlement mechanism that operates outside the confines of the traditional financial system. By employing this onchain transaction model, Rain improves operational efficiencies and reduces capital costs, creating a win-win situation for all parties involved. Financial institutions are historically burdened by lengthy settlement processes and excessive collateral requirements, but Rain's approach alleviates these issues significantly.
Additionally, Rain has achieved a major feat by executing the world's first closed loop credit card receivable financing using stablecoins. By collaborating with multiple capital partners, the platform can borrow stablecoins to facilitate settlements. This novel arrangement enables smarter borrowing practices and reduces costs while providing lenders with superior collateral, further enhancing the overall stability of the financial ecosystem.
Farooq Malik, CEO and Co-founder of Rain, emphasizes the importance of their collaboration with Visa: "Participating in Visa's USDC settlement program allows us to operate beyond standard banking hours, thus optimizing our capital efficiency while offering our counterparts a high level of protection. This sets a new benchmark for credit issuance in the digital age."
Furthermore, Rubail Birwadker, Visa's Head of Growth Products and Partnerships, concurs: "The complexity associated with cross-border transactions has long existed, but the advent of blockchain technology combined with stablecoins is poised to simplify this challenge. Our collaboration with Rain moves us closer to realizing seamless global payments."
Moving forward, Rain continuously seeks to discover additional avenues to enhance the utility of stablecoins, including the development of its asset-agnostic settlement infrastructure and blockchain permissioning. The aim is to create a financial ecosystem that is not only more efficient but also more accessible, paving the way for increased investment in underserved markets.
Operating as a principal member of Visa, Rain can facilitate payment solutions at over 150 million merchant locations globally. This positions the company as a key player in merging blockchain technology with traditional finance, thus allowing digital assets to become integral to everyday transactions.
In summary, Rain's partnership with Visa heralds the potential for streamlined global payments and innovative financial products. By changing how transactions are processed, both companies aim to create a more inclusive and efficient financial landscape for the future. As customer needs evolve, Rain is at the helm, leading the charge with cutting-edge solutions that cater to the demands of modern consumers and businesses alike.
Founded in 2021 by Farooq Malik and Charles Naut, Rain has been at the forefront of integrating stablecoins into everyday financial transactions. By leveraging Visa's extensive network, Rain now positions itself to allow consumers and businesses easy access to onchain payments. The partnership kicks off with Rain's inclusion in Visa's pilot program designed for stablecoin settlement, marking a significant milestone for both companies.
One of the most noteworthy advancements from this partnership is Rain's complete tokenization of credit card receivables. By transitioning all transaction settlements for Visa cards to USDC (a prominent stablecoin), Rain enables real-time settlements every single day of the year, effectively optimizing cash flow for users and reducing reliance on traditional banking schedules. This means users can efficiently conduct transactions without the usual restrictions that banking hours impose, thereby enhancing liquidity and promoting a more dynamic marketplace.
Rain's technology stack offers a backend infrastructure characterized by APIs and compliance specifications that facilitate seamless integration with existing fintech solutions. This infrastructure supports a variety of financial applications, helping fintechs easily create and launch their own programs centered around stablecoin-linked cards. As the demand for quick and global transactions rises, Rain has experienced a surge in interest from partners eager to explore onchain card solutions.
The company has introduced an innovative settlement mechanism that operates outside the confines of the traditional financial system. By employing this onchain transaction model, Rain improves operational efficiencies and reduces capital costs, creating a win-win situation for all parties involved. Financial institutions are historically burdened by lengthy settlement processes and excessive collateral requirements, but Rain's approach alleviates these issues significantly.
Additionally, Rain has achieved a major feat by executing the world's first closed loop credit card receivable financing using stablecoins. By collaborating with multiple capital partners, the platform can borrow stablecoins to facilitate settlements. This novel arrangement enables smarter borrowing practices and reduces costs while providing lenders with superior collateral, further enhancing the overall stability of the financial ecosystem.
Farooq Malik, CEO and Co-founder of Rain, emphasizes the importance of their collaboration with Visa: "Participating in Visa's USDC settlement program allows us to operate beyond standard banking hours, thus optimizing our capital efficiency while offering our counterparts a high level of protection. This sets a new benchmark for credit issuance in the digital age."
Furthermore, Rubail Birwadker, Visa's Head of Growth Products and Partnerships, concurs: "The complexity associated with cross-border transactions has long existed, but the advent of blockchain technology combined with stablecoins is poised to simplify this challenge. Our collaboration with Rain moves us closer to realizing seamless global payments."
Moving forward, Rain continuously seeks to discover additional avenues to enhance the utility of stablecoins, including the development of its asset-agnostic settlement infrastructure and blockchain permissioning. The aim is to create a financial ecosystem that is not only more efficient but also more accessible, paving the way for increased investment in underserved markets.
Operating as a principal member of Visa, Rain can facilitate payment solutions at over 150 million merchant locations globally. This positions the company as a key player in merging blockchain technology with traditional finance, thus allowing digital assets to become integral to everyday transactions.
In summary, Rain's partnership with Visa heralds the potential for streamlined global payments and innovative financial products. By changing how transactions are processed, both companies aim to create a more inclusive and efficient financial landscape for the future. As customer needs evolve, Rain is at the helm, leading the charge with cutting-edge solutions that cater to the demands of modern consumers and businesses alike.
Topics Financial Services & Investing）
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