Create your own Crypto Bank Reinforced with the Right Security Features

According to the latest Global State of Crypto Report, 41% of Indonesians own crypto assets. This is because to date most Indonesians are unbanked. Even the Chainalysis data shows that digital banking app development is on the rise and that’s because residents of more and more countries are investing in cryptocurrencies.

Now imagine the scale of adoption if the crypto platform is made available on the users’ banking apps. That is what a crypto bank is. A crypto bank has the potential to become a next-generation financial tool. It can trigger a revolution just like PayPal. When you create your own crypto bank, it gives users services like traditional banks:

• Interest
• Payments
• Savings
• And on top of all this, it becomes their crypto investment gateway.

What is a crypto bank?

A crypto bank is a digital banking app that provides financial services, lifestyle benefits, rewards as well as crypto buying opportunities to its users. The bank can have its own token which can be used to pay service fees for the different services a user avails and the same token can be traded freely on different crypto exchanges. The users can also earn rewards for achieving certain milestones, for example, they can get rewarded with specific tokens when they complete a certain number of transactions on the crypto banking app.

Why is a crypto bank better than a regular bank?

Since COVID-19 started, we have witnessed global inflation, economic crises, and more. Federal Reserve has been printing money and offering relief checks which is hitting the global economy. Amidst the Russia Ukraine war, the global economy suffered further and proved that merely relying on the traditional financial system is not enough. More users now want to invest in crypto to earn higher returns. And that is why many financial services providers are now investing in digital banking app development.

What are the benefits offered by a Crypto bank?

• Crypto Banks Offer Easy Transactions

Crypto banks ensure to offer easy transactions to their users. To enable this, they partner with licensed banks so that they provide users with personal IBAN accounts and debit cards. With these debit cards, the users can easily make payments at different points of sale.

• Fiats Into Cryptocurrencies

When you create your own crypto bank, you can support deposits of fiat like USD, EUR, GBP, or INR via your bank transfers. Then as a crypto bank, you can enable your users to convert their fiat into stablecoins like USDT. The users can then choose to buy crypto assets like Bitcoin, Ethereum, Polkadot, XRP or more with their USDT balance. It should be an easy-to-use process.

• APY On Investments

Crypto banks can offer fixed-term investment APYs. In addition to that, it offers users booster rewards based on their membership tiers. The users need to lock up their assets in their accounts for a minimum duration. The longer they lock up their assets, the higher rewards they earn.

If you want to engage more users, you can also offer no lock-up periods APYs where on a minimum investment amount, the users earn rewards.

How to make sure your crypto bank is safe enough for users?

Digital banking app development involves finances and that is why the security of such apps is primary. A comprehensive approach towards cyber security is much required and the following measures are advisable:

• All the funding transactions must be screened to ensure no fraudulent transactions should go through.
• If the transaction amount surpasses a certain threshold, the crypto bank operation team must provide manual approval for the transaction.
• Users’ personal data must be protected against any type of hack.
• Multi-layer security matrix that generally involves multi-party signature computation must be deployed to protect users’ assets.
• Funding address authentication must be automated and rotated to protect users’ funds.

Wrapping it up

In simple words, a crypto bank is a virtual asset management platform that is integrated with traditional banking services. It should be capable of simple instant transfers and asset management.

If you want to create your own crypto bank, connect with our expert blockchain developers. We provide a white label crypto-friendly banking solution fortified with all banking features – from user-onboarding to payments. In addition, we specialize in the development of customized banking platforms from the ground up.

Schedule a free demo of our white label crypto-friendly banking solution or connect with our subject matter experts to share your business needs.