Developments in technology and FinTech industry have been often challenging traditional banks in the past years. The digitalization of financial services led to the appearance of online banking. However, even more recent developments of blockchain technology and steady adoption of cryptocurrency have now created solutions for emerging demands: crypto banks.
What is a crypto bank?
By the money-related activities that crypto banks engage in, they are just like the classic banks we are all familiar with. That is deposits and withdrawals, savings, lending and borrowing, and investing in various instruments and markets. However, unlike traditional banks, crypto banks have integrated cryptocurrency into these operations.
Due to the capabilities of blockchain finance, many of the companies are able to offer bank-like services for other enterprise-level businesses, even where regulations haven’t taken shape. There are platforms like Bitwala that allow customers to invest in cryptocurrencies and earn yearly interest. Crypto.com, Crypterium, Coinbase and others provide the infrastructure to buy, sell, and pay with crypto.
Even more advanced crypto banks provide you a trust account with your own IBAN, allowing you to deposit the cryptocurrency and manage your digital assets. Such services are slowly taking over the classic banks by providing a more safe environment for asset storage. For example, VSafecustody handles all banking operations for businesses, no matter the level of risk the company holds.
How does the adoption of crypto services develop so fast? While some companies decide to turn all of their forces on developing crypto solutions themselves, other platforms, such as VSafecustody, address open-banking platforms like Crassula: Crassula Core Banking product allows you to build a crypto bank, while Crassula Merchant Payments product can support projects that need to build crypto exchange solutions.
Traditional banks, though, are slowly recognizing the trend of crypto payments. For example, in America, it is now allowed to hold crypto assets in traditional banks.
How could banks in other countries keep up with the trend?
Crassula products are able to connect Crypto Custody and Crypto Exchanges, helping Crassula clients to build technical solutions, business products, and accounting records. The Core Banking solution is suitable not only for banks of FinTech companies, but also for resellers, holding structures, and more. To learn more about how Crassula platform can help your business, whether you are a bank or a company willing to integrate crypto into their operations, request Crassula Demo on the website crassula.io