Is There Need for Banking Services For Blockchain Businesses?
The crypto world is currently enjoying tremendous growth, with the most recent figures valuing the crypto market at $237 billion. There are increasing daily transactions done using crypto and also an increasing demand for crypto-fiat exchanges.
The growth of the crypto world has led to the rise of blockchain-based businesses that need a modernized banking platform that will link fiat and crypto worlds. However, crypto enthusiasts' efforts of creating the platform have proven futile.
Why does the crypto world need a proper banking system, what are the kinds of blockchain services that would benefit from the introduction of crypto banks? Keep on reading to know more about crypto banking.
Blockchain Businesses That Need Banking Services
For the longest time, crypto enthusiasts have been against banking because of the introduction of an intermediary, something that goes against the entire nature of digital currencies. But, there are various banking services, which, if inculcated to the crypto world and crypto business, will lead crypto to global adoption. Here are some of the blockchain businesses that could gain quite a lot from banking services.
Crypto Exchanges
Crypto exchanges are currently gaining ill repute for unfairly varying fees, user confusion, financial issues, and poor reporting. The exchanges, therefore, need banking assistance to boost:
- Simplicity- Crypto exchanges are unnecessarily complicated with the use of many different wallets to complete a transaction. Also, users need different platforms, each of which offers a single service. Proper crypto banking methods, if introduced, will solve all of the crypto exchange worries. Customers won't need more than one wallet or platform to complete a single exchange. Coinbase has, for example, tried to ease its users' work by allowing them to purchase crypto using fiat, but there is still a long way to go in terms of streamlining the whole process for the crypto world.
- Scalability- Banking systems allow customers to transfer even significant sums of money from one bank to another just by a small operation. Scalability issues in the crypto world are crippling the industry. The purchase or transfer of crypto on a large scale is limited to only a few tens of thousands to reduce money laundering. The limit is also set because of the liquidity issues in the crypto world. However, crypto banking will solve scalability issues because it will assure high liquidity of all digital assets and comply with government anti-money laundering laws.
- Reporting- Banking systems offer accurate reporting to individuals for every single transaction completed. Reports about service outages and other earlier warnings have made customers trust the banking industry. The crypto exchange industry needs these forms of reporting to ensure customer confidence is maintained.
Proper crypto banking, if introduced to the crypto world, will streamline processes associated with crypto exchanges. That will, in turn, boost the crypto exchange businesses.
DeFi
Defi offers peer to peer exchanges and decentralized loan services. Their main idea is the lack of a middleman to process the transactions between them. While this has worked perfectly for some time, the global growth of DeFi is still stagnant. But why?
Currently, DeFi has majorly focused on technologies that allow for crypto to crypto lendings or exchanges. However, for DeFi to grow, it will need to, in the future, expand and inculcate the fiat system in the process. Crypto to fiat lending, will assist DeFi in the quest to ensure the liquidity of cryptos and accelerate the overall global DeFi adoption.
Another exciting thing about banking and DeFi is that borrowers can lend in cryptos with fiat as the collateral and vice versa. This alone is a catalyst for DeFi growth.
Crypto Market Makers
Market makers, or as they are commonly known, liquidity providers, need banking systems more than any other blockchain business. The need arises because their job mainly deals with the direct bridge between crypto and fiat worlds. To adequately provide liquidity, they need to have fiat bank accounts with large sums of fiat reserves.
Use Keypay For All Crypto Banking Services
The introduction of Keypay to the world of crypto will help crypto fanatics get the much-needed banking services. Keypay is an online platform that offers all-round banking services needed for blockchain businesses.
Keypay offers peer to peer exchanges that are, although decentralized, still very secure to assure the security of individuals' digital assets. In the P2P, individuals can apply high collaterals to ensure the safe return of their sum.
The crypto exchanges are simple since there is the involvement of a single platform that does all the work. Since it's a crypto to fiat bridge, the Keypay platform also offers liquidity provision services.
Registration on Keypay is also effortless with just three steps; signing up, verifying details, and opening the platform to start carrying out your business. If all blockchain-based companies consider using the keypay, the global crypto adoption will be highly accelerated.
Conclusion
Ever since the creation of blockchains, there has been humongous growth in the digital currency world. The introduction of blockchain-based businesses has also significantly impacted the overall crypto adoption. However, the lacking banking system for blockchain businesses has led to the deceleration of crypto growth. The fiat banking systems fear the technicalities and the possibility of illegal activities that may come along with crypto banking.
Crypto banking is vital for the overall growth of the crypto world. It is safe to say that although fast-growing, blockchain businesses have not seen their best days yet. Platforms like Keypay, which offer banking services for blockchain businesses, could hold the key to better adoption and scalability.
