Visa joins Tangem to launch new crypto hardware wallet

Tangem, a self-custodial cryptocurrency wallet provider, has partnered with Visa to launch a new cryptocurrency wallet. The hardware wallet technology will boast integration of Visa payment cards.

According to a July 4 announcement, the wallet will be launched under the Tangem brand. The new business-to-consumer (B2C) product is expected to launch by the end of 2024.

Direct crypto payments to merchants

A key highlight of the wallet will be Tangem Pay. The technology will allow users to spend cryptocurrency directly from their self-custodial wallet. Transactions would be executed via payment terminals or online payment tools.

The launch follows a Visa certification, which Tangem received in February 2022. According to Tangem chief technology officer (CTO) Andrey Lazutkin, Tangem has panted the technology that will “soon be ready to present to the world.”

Per the CTO, Tangem users will get a “two-in-one solution” that eliminates the requirement of using a bank while also offering the security benefits of self-custody. He added:

This is a significant step towards bridging the gap between traditional banking and digital assets.

A seamless user experience

One differentiating feature of Tangem’s new wallet is that it can be operated without generating a seed phrase. However, users have the option to use that anytime.

Seed phrases are a sequence of 12, 18, or 24 words generated by a cryptocurrency wallet. These serve as a human-readable representation of the wallet’s private key.

According to Laztkin, Tangem Pay is based on a smart contract and comes with one card without a seed phrase.

Future plans for the novel payment technology include a B2C solution available to users not using a Tangem wallet. The firm is looking to deploy the tech as a “standard Web3 service.”

The technology also allows banks to integrate crypto solutions directly in their product lines by leveraging blockchain networks as “platforms for payments,” Laztkin added.

Initially, the wallet will launch with support for Tether (USDT) on the Polygon network.

According to Cuy Sheffield, Visa’s head of crypto, the new wallet will help facilitate “effortless payments with digital currencies.”

At the time of writing, Tangem’s existing hardware wallet is available for 59 networks, including Bitcoin and Ethereum.

Meanwhile, Visa has been quietly cementing its presence in the cryptocurrency space. In January, the payments giant collaborated with payment infrastructure provider Transak to offer direct crypto-to-card withdrawals in over 145 nations.

Visa had already announced its plans to advance in the crypto sector last year. At the time, the firm was actively recruiting senior software engineers for its crypto team. 

Furthermore, the company is also working on a payment system designed to connect CBDC networks with the existing payment infrastructure.