Cryptocurrency is gradually entering the mainstream market in many regions. Some countries have already legitimized cryptocurrency and accept payments in Bitcoin, Ethereum, etc. Have you ever thought about where does the infrastructure for crypto banking come from? The traditional banking system doesn’t support crypto transactions. That’s why technologists are engaged in producing specially designed crypto banking systems. Interested? Creating everything from scratch is not necessary. Buy crypto banking solution from blockchain service providers and customize them to suit your requirements.
Let’s find out how crypto banking works and the benefits of offering crypto banking services to customers in today’s world.
Crypto banking is where virtual/ digital currencies are deposited, loaned, traded, and repaid on a secure blockchain. Similar to traditional banks, crypto banks provide financial services to account holders. The difference here is that crypto banks offer virtual services on a DeFi platform. DeFi is short for decentralized finance, a system that aims to bring greater transparency and clarity to transactions on the blockchain.
The crypto bank allows users/ customers to create accounts and deposit cryptocurrency. Users can swap, trade, lend, borrow, and withdraw crypto through the bank’s DeFi platform. Every user is provided with an online crypto wallet to store the virtual currency and use it for transactions. There are two types of crypto wallets provided by the banks:
Crypto banks allow crypto assets as collateral when borrowing money on the DeFi platform. It’s a simple process of trading smart contracts and doesn’t require you to sign a bunch of applications or wait for days to get the loan amount.
The following are some reasons why crypto banking is becoming popular:
Blockchain speeds up remittances and reduces the transaction fee. It takes less time to send the digital currency to the other person. Holidays, business timings, etc., will not play a major role in crypto banking.
A smart contract differs from a traditional contract and has built-in regulations to automate its flow on the blockchain. This automation reduces the workload on the financial institutions and encourages more transactions.
Crypto platforms take necessary measures to ensure user authenticity while providing anonymity. KYC and AML (anti-money laundering) investigations keep user information private and reduce the risk of fraudulent transactions on the blockchain.
Crypto banking services remove cross-border and time zone restrictions. You don’t have to worry about last-minute payments to another country. Furthermore, you save money by avoiding currency conversions and additional charges. Just send cryptocurrency from your wallet to another belonging to a person from any country.
There’s no need to build crypto friendly banking solutions from scratch. The process is time-consuming, cost-intensive, and stressful. Existing financial institutions and startups can use white label services to customize the crypto banking software and create their own version.
White label service providers reduce costs and save time and resources spent on developing the crypto banking platform. You can offer more services to customers in less time, and that too without going over your budget. The service providers also take care of maintenance and upgrades so that you can focus on developing the business.
Crypto banking solutions are in great demand in the current market. Japan, Canada, Switzerland, Thailand, Russia, Singapore, etc., are some countries that have adopted crypto banking. With cryptocurrency gaining more popularity each day, there’s a need for crypto banks and DeFi platforms to facilitate faster, easier, and more secure transactions between users from anywhere in the world. Want to own a crypto bank? Get along with the Antier team to buy crypto banking solution par excellence.
Please fill out the form to make the request. We’ll be in touch to schedule a free demo.
