Stablecoins Take a Leap Toward Mainstream with Self-Custody Visa Card Innovation

Crypto payments firm Truther is set to launch a non-custodial USDT Visa card in El Salvador on January 29, 2025, marking a significant step in bridging the gap between stablecoin holdings and everyday spending. The card, developed in partnership with Visa, allows users to spend USDT directly from their self-custody wallets without preloading funds or relying on custodial services, a feature that addresses key privacy and control concerns in the crypto ecosystem according to CoinDesk. The product, unveiled during an interview with CoinDesk at the Blockchain Conference Brasil, deducts the USDT equivalent of purchases in real time from Truther's self-custody wallet, which operates on the Polygon blockchain and plans to migrate to the Liquid network for enhanced privacy.

The card's design caters to crypto users seeking to avoid converting their holdings to fiat or storing balances on centralized platforms. Unlike traditional crypto cards that require preloading or custodial accounts, Truther's solution preserves full user control over private keys while enabling seamless transactions. The service charges a 2% fee on currency conversions and waives the IOF tax for Brazilian users, making it particularly appealing to the country's growing crypto market. This innovation aligns with broader trends in decentralized finance (DeFi), where self-custody and non-custodial solutions are gaining traction as users prioritize autonomy over convenience .

Truther's expansion into El Salvador-a country where bitcoin is legal tender-positions the card as a test bed for broader adoption across Latin America and beyond. The firm plans to roll out the card to all users after the January 29 launch, with the product's QR code-based transactions and integration with Brazil's instant payment system PIX enabling real-time settlements according to financial reports. The company also intends to extend its Swapix API, which facilitates crypto-to-fiat conversions, to Argentina, Mexico, Colombia, and Russia in the coming months, targeting markets with robust 24/7 payment infrastructure according to CoinDesk.

The initiative reflects Visa's ongoing efforts to integrate stablecoins into its payment network. The partnership builds on Truther's existing infrastructure, which processes $40 million in daily volume by linking stablecoins like USDT to local payment systems. This aligns with Visa's broader strategy to explore digital currencies, including recent pilot programs for stablecoin payouts to creators and gig workers . For Truther, the collaboration underscores the potential for stablecoins to become a mainstream medium of exchange, particularly in regions with underdeveloped banking infrastructure or high inflation.

Looking ahead, Truther's self-custody wallet will support additional local stablecoins, including tether gold and an Argentine peso-pegged token, by early 2025. The wallet's ability to facilitate QR code-based transactions and receive stablecoins without gas fees further enhances its utility for everyday use. Founder Rocelo Lopes anticipates that stablecoin volumes could triple within 12 months, driven by traditional financial institutions' growing interest in the space. As governments worldwide tighten crypto tax regulations-such as the UK's expanded Cryptoasset Reporting Framework-Truther's non-custodial model may offer users a compliant yet decentralized alternative to conventional banking .