How Crypto Banking is pushing a new frontier in financial and non-financial services
How Crypto Banking is pushing a new frontier in financial and non-financial services
- Mousser R.
- 7 min read
Table of Contents
Cryptocurrencies, seen by some as the future of finance, are becoming increasingly appealing in the popular realm of making your money work for you.
Lately, the global finance environment has seen consistently low-yields. Because of that, digital assets platforms have been attracting both experienced and amateur investors to allocate billions into high-yield crypto banking products.
The emerging digital currency market is creating a parallel universe of finance, commerce, investment, and speculation. It could profoundly change the global economy, as well as disrupt markets and businesses. In fact, it is starting to reshape the way individuals borrow and hold assets, and transforming banking as we know it.
Crypto-as-a-service (CaaS) banking:
Which alternatives does it offer?
Crypto debit cards for daily expenses
While prepaid crypto cards convert cryptocurrency into a EUR balance in advance to be able to spend, crypto debit cards are linked directly to a crypto wallet. They convert digital currencies to EUR at the time of your transaction. This way, it’s not necessary to plan ahead before every purchase, or keep a tally of how much money is left in the card.
A real life example:
Take David, he has been a crypto enthusiast for a while, and recently his crypto app offered him a crypto debit card. Until now, only a small fraction of his income went to Bitcoin due to having to cover monthly expenses in fiat money.
David says: “Now I get my salary in my bank account, as usual, and move my expenses budget straight to bitcoin! When I need to pay for groceries, I swipe my card, and the app converts my bitcoin balance into Euros right there. It’s like I never left my old debit card, but I get to own crypto without worrying about the hassle of sending it back to the bank if I need the money.”
Crypto savings accounts - Earning Interests
Crypto savings accounts allow you to earn interest on your cryptocurrency by lending your stored crypto to others. The yield varies depending on the cryptocurrency. With the safer bets, like Bitcoin, it may go up to 5%, but some cryptocurrencies have been known to exceed 10% interest rates.
The relevance of these crypto accounts has increased tenfold since interest rates in Europe went negative, and banks started to charge money to hold people’s funds.
Let's take a look at how David is using his crypto savings account
“When I opened a cryptocurrency savings account, I invested my funds into a digital currency like Bitcoin, Ethereum, or a stablecoin” said David. The savings account provider then loaned the crypto to borrowers, and provided David with a portion of the interest.
“The best part is that if I don’t want to be exposed to volatility, I simply choose to earn interest on a stablecoin pegged to EUR or USD,” says David. “While my friends’ money bleeds in the bank, I’m getting both gains and stability in the right measure for me”
How can innovators benefit from a crypto banking platform?
Cryptocurrencies, when used in the right ecosystem, are positioning themselves as a safer, faster, and more transparent way of transacting. Owing to this usefulness, many companies are launching cryptocurrency features to be a part of the transformation of traditional finance.
Cryptocurrencies are increasingly seen by many as a promising investment option. Traders are navigating towards crypto exchange software to invest in digital currencies and profit there, while stocks fall prey to a barrage of global crises.
All this has resulted in the growing need for cryptocurrency exchange integrations and features. Conventional banks allow you to purchase other currencies, so why wouldn’t crypto banks do the same with cryptocurrencies? Storing and spending features isn’t enough to build a crypto bank. Innovators in the sector need to connect an exchange into their back-end too.
White-label exchange built on a CaaS platform
A white label exchange is a market-ready solution. It can be easily connected to the back end of your app, and its front end can be customized to the point were it looks uniquely yours.
The UI/UX can be readily customized per your brand’s requirements. Launching it can be considerably faster than building your own, bringing down your time-to-market from up to a year, to just a few weeks.
Finding synergy:
Legacy & crypto banking platform components
Companies can use next-generation crypto-banking platforms to bridge the gap between the Fiat and Crypto. These two ecosystems have operated in parallel until now, but they are starting to fuse with one another, and that creates a huge business opportunity for those who manage to create synergy.
Inherit traditional financial products
Crypto banking platforms are enabling support for all classic fiat banking products. Among them:
- Deposits & withdrawals
- Transfers
- Checking/savings accounts
- Insurance products
- Loan products & management
- Bill payments
Instant European cross-border transfers
With both Fiat money and cryptocurrencies under your fingertips, moving and converting funds between countries has never been easier. You can send money in a matter of minutes, even seconds, and at a fraction of the cost that old-school remittance companies charge.
Business and personal accounts in multiple currencies
Thanks to globalization, companies now need to hold balances in multiple currencies. In fact, since the rise of remote work, more and more people find themselves living in different countries too. Banks often have trouble offering accounts in more than a couple of currencies.
With digital banking though, it’s increasingly more popular to have them. Wise and Revolut are great examples of what users have come to expect from their neobank. Adding cryptocurrencies to the mix is the next natural step.
Debit card management
Comfortably Issue and manage virtual and physical the debit cards of your clients. It is as simple as plugging your application on the server to enable an in-house solution that can be used even without coding skills.
Closing Thoughts:
Benefits of having Striga as a technology and regulation partner
For an all-inclusive solution, look no further than Striga, a CaaS banking solution that delivers crypto & banking services combined. Working with us creates benefits for both you and our end-users:
- Enable top-notch AML procedures over users funds and transactions
- Decrease transaction and custody costs while enhancing speed
- Improve conversion and loyalty rates by implementing onboarding, pay-in, and pay-out processes with superior user experience
- Acquire essential infrastructure (including the ability to create IBAN accounts) on top of which to build new banking/financial services as your business grows
Striga Crypto-native Banking as a Service:
Your path to building and launching financial products
Join the financial businesses that use Striga’s cloud platform to delight their customers and launch their own products without the complexities that come when dealing with core banking solutions’ relationships, licensing, compliance and payments methods.
