The Importance of Building Financial Services for Digital Assets

When Satoshi Nakamoto launched bitcoin in 2009, it created a new financial ecosystem. A global monetary network was found that was apolitical and non-sovereign and offered a currency with a limited supply of 21 million. Along with its decentralization and security, bitcoin was also soon recognized by many as a better store of value than most traditional financial instruments. 

It goes without saying that in the land of digital assets, bitcoin is king — the original cryptocurrency. But if we look at the bigger picture, the future of finance and web 3 infrastructure depends on DeFi. Many emerging digital assets offer something more than an exchange of value. And to make them mainstream and help the masses leverage DeFi to the fullest, the industry needs more robust and sustainable financial services for everyday use. 

A Real World Bridge to DeFi Is Paramount 

It is undeniable that DeFi has made a giant leap in innovation and created significant market demand. There are now separate market sectors for payments, security, marketplaces, NFTs, blockchain gaming, and DAOs.

People view these purpose-built applications as investments, like stocks and real estate. They want to own the asset fueling the ecosystem and translate the value to the real world. However, it has been challenging to build that bridge to the real world with the current state of financial services for digital assets. It is also one of the biggest bottlenecks to driving mainstream adoption. 

What is required to bridge the real world and DeFi is a suite of financial services that have mainstream finance-like features but don’t need centralized or censored accounts. Users should be able to convert their crypto holdings quickly to use, both on online and offline stores. 

As prominent financial service providers, like Visa and PayPal, are already on board with providing crypto services, it should be seamless for users to transact using crypto debit cards connected to their wallets. 

On top of integrating crypto-powered financial services, it is also important to leverage the power of DeFi in the real world. DeFi provides many efficient models that can increase capital efficiency. As a result, users will have more trading power while still having exposure to their crypto holdings. By integrating such financial services, digital assets will no longer be tokens moving from one blockchain to another. Instead, they will have a real-world utility that will help people understand the opportunities behind investing in crypto. 

Integrating Crypto Into Daily Life 

 A technological platform with deep roots in the blockchain is required to facilitate the integration of crypto into daily life. It should serve the public and provide simple solutions to corporations on how to build their own personalized crypto services. 

One of the leading platforms providing financial services for digital assets on all fronts is Baanx. Baanx is a unique FinTech platform aiming to build the infrastructure that would make crypto more user-friendly and efficient for daily usage. The platform offers a wide range of financial services, from crypto-backed lending and debit cards to integration of APIs. 

Recently, the UK-based company also got approval from the FCA to carry out crypto activities and for their latest product known as Cryptodrafts. It allows users to collateralize their crypto holdings and borrow stablecoins at zero interest rates without liquidating any assets. Baanx also offers a global Crypto Life debit card to allow users to transact anywhere using crypto or fiat further facilitating the everyday usage of crypto. The card is accepted by more than 50 million merchants worldwide. 

For companies, Baanx provides an API-driven platform where they can create their own digital products and payment gateways. As it is already under compliance, it becomes easier for institutions to adopt Baanx’s crypto solutions. 

The Future Seems Promising 

Creating financial services and APIs that drive more utility and use case into crypto might be exactly what crypto needs for the general consumer to realize the value that crypto provides users. From providing consumers with the ability to transact with crypto easily, and building solutions for companies to integrate crypto payment solutions into platforms, fintechs like Baanx might be paving the way for mass adoption of crypto.