After a first five months of mediocrity, stablecoin terraUSD ($UST) and companion coin Terra Luna ($LUNA) crashed in mid-May, bringing down coin prices across the board, as many individuals and organizations relied on the ecosystem to balance out their own crypto investments. At the same time, fear of an impending recession was growing, and as we entered June, many large players in the crypto space began hiring freezes, lay-offs, and other measures to protect themselves during the downturn, including Coinbase, Gemini, Crypto.com, and others.
These downward pressures on the crypto market were only further exacerbated this week, after reports of crypto investing and lending company Celsius going illiquid began circling online until the company officially announced they were halting all withdrawals and transfers on their app. This spurred even more selloffs as more investors grew worried that their crypto would get frozen or permanently lost in a wallet they couldn’t reach.
This week marked an 18-month low for Bitcoin ($BTC). Source: CoinMarketCap
That’s where CryptoFi comes in.
CryptoFi offers Crypto-as-a-Service (CaaS) solutions for traditional banks and credit unions interested in offering cryptocurrency solutions to their end users, including investing tools, educational content, and more.
“Celsius halting withdrawals will force crypto users to take a pragmatic look at where and how their digital assets are being stored,” says Kian Sarreshteh, co-founder & CEO of CryptoFi. “We view this as an opportunity for traditional banks and credit unions to educate their users on how they can safely and securely buy and hold cryptocurrency through their traditional banking apps, where it is safely held at a qualified digital asset custodian.”
CryptoFi engages with banks and credit unions to offer crypto trading in their user’s banking dashboards, with instant transfer of funds from their traditional accounts. On the back end, the financial institution can select what coins to offer, and choose from a range of liquidity providers and custodians, all thoroughly vetted, to get the best coverage and rates. CryptoFi also offers data-driven insights, marketing tools, and long-term support so that the institution can continue to optimize their offering.
Consumers trust their financial institution. A 2019 Accenture study of 47,000 banking and insurance customers revealed that 73.5% had trust in their banking and insurance provider to look after their long-term financial well-being, and over half wanted an omnichannel banking experience. CryptoFi can help banks and credit unions build this by providing crypto solutions and becoming their end user’s first preference in cryptocurrency investing.
It’s possible we won’t be seeing the end of this winter soon. With so much uncertainty in not only cryptocurrency prices but also price levels across the board, combined with growing distrust for third party cryptocurrency investing tools, Bitcoin prices could stay low for a while. But eventually, just like the change of seasons, demand for crypto will grow once more. CryptoFi wants to help banks and credit unions be ready with the tools they need to meet this demand. They can learn more and sign up for a demo today at cryptofi.tech.
CryptoFi is not a financial advisor and nothing on this blog should be construed as financial or investment advice. Do your own research before investing in any asset. Cryptocurrency can be highly volatile, and investing in it may result in capital losses. Read https://www.cryptofi.tech/disclosure.