The Realm of Crypto Banking: Who is positioned for Success?

The cryptocurrency market is gaining mainstream adoption globally – the size of the market that almost doubled from $128 billion in 2018 to $240 billion in 2019 is a testament to its burgeoning popularity. The areas witnessing rapid growth include the UK, Australia, Canada, Mexico, Nigeria, and India.

The digital currency is attracting the interest of institutional investors. A similar positive response can be seen from central banks and regulators as well as political decision-makers. The US Federal Reserve is considering creating a crypto dollar linked to the value of a physical dollar. China is prepared to launch its digital Yuan. The Financial Conduct Authority in the UK has started to define the cryptocurrency regulatory framework. J.P. Morgan has partnered with the Deutsche Bank to roll out a blockchain-based payment system driven by cryptocurrency. Similar positive developments are occurring in fintech core banking system.

A huge opportunity lies for crypto-friendly banks that act now and take the lead. The following are those who are poised to benefit from providing crypto-friendly banking solutions:

• Crypto-first Neo Banks

These banks are combining the potential of cryptocurrency and blockchain to deliver comprehensive crypto banking solutions to their customers. SEBA, a Swiss bank is a popular example of a crypto-first neo bank bridging the gap between conventional and crypto worlds.

A similar example includes Wirex – a UK-based digital payment platform that allows its customers to buy, sell, exchange, pay using cryptocurrency. In addition, the company offers Wirex Visa Card and multi-currency card, empowering its customers to spend cryptocurrency anywhere Visa Card is accepted.

• Neo Banks

Maneuvering as the banking industry’s innovators, challenger banks are readily embracing disruptive technology like blockchain to build fintech core banking system. They serve as an ideal bridge between fiat and crypto banking.

One of the biggest neo banks to gain a competitive edge includes Revolut, which allowed its customers to complete transactions using cryptocurrencies like Bitcoin, Ethereum, and Litecoin. Bitwala is another successful bank offering crypto banking solutions to make banking more accessible, cost-efficient, quick, and streamlined for its customers.

• Cryptocurrency Exchanges

Crypto exchanges are positioned to bridge the gap between crypto and fiat currencies. With huge cash reserves and a large base of crypto-friendly customers, it would be easier for them to build fintech core banking system.

Although crypto exchange platforms will be subject to close regulatory scrutiny, it would forge the path for a more legitimate banking ecosystem.

Binance, the largest crypto exchange across the globe has launched Binance Card – a debit card that will be accepted by more than 46 million merchants in 200 regions and territories.

Take Away

Blockchain and crypto hold great potential to transform the banking industry by reducing complexity, alleviating costs, and increasing transparency. As they are being accepted by banks, financial institutions, entrepreneurs, technologists, and regulatory authorities, we are seeing the emergence of a more number of blockchain and crypto-driven banking solutions like borrowing and lending, trade finance, trading, mortgage, and payment systems.  

How Antier Solutions can help

Antier Solutions can help start-ups, well-established organizations, and financial institutions to launch their crypto banks. Strengthened by a team of finance and technical experts, we provide complete solutions – from guiding on compliance to acquiring a bank license to providing a white label banking ecosystem packed with all essential banking functions, including bank accounts, credit/debit cards, payments, trading, lending, and user onboarding.

Schedule a free demo of our fintech core banking system or connect with our subject matter experts to share your business requirements.