Understanding the Benefits of Crypto-friendly Banking
Decentralized crypto banking brings the possibility of performing loan services and credit rating without the involvement of any third party, in contrast to the centralized platform. DeFi crypto banking is making fully integrated digital asset banking services and payments accessible to everyone — whether individuals, entrepreneurs, and enthusiasts alike.
Today, billion dollars are tied up in the DeFi platform in comparison to the trillions of dollars in conventional, centralized finance. But, the exhilaration of rapid growth and the possibility of meaningful investment returns in a low-interest-rate environment are starting to pull some real money away from traditional investment. Banks need not be afraid but should seize the opportunity to offer crypto banking solutions and expand their customer base.
The main aim of DeFi crypto banking solutions is to create a financial service ecosystem that’s transparent, secure, cost-effective, and accessible to everyone. Within this ecosystem, the users have full control over their assets and can interact with the ecosystem through decentralized apps.
Benefits of Crypto Banking Software Solution:
1) Fraud and Crime Reduction
Developed on the blockchain technology, the DeFi crypto bank has the power to reduce fraud in the financial world. The traditional banking platforms are built on a centralized database. It makes them more vulnerable to hacks because once the hackers breach the database, they have full access to it.
On the contrary, a decentralized crypto banking solution is built on the blockchain technology where all the transactions are distributed on a ledger. Each block within the ledger contains a timestamp and holds batches of individual transactions with a link of a previous block. This mitigates the risk of cybercrime and makes the platform secure.
2) Easy Borrowing and Lending Process
A decentralized crypto banking platform eliminates the involvement of a third party, thereby resulting in reduced counterparty risk and making borrowing and lending secure, faster, and affordable.
Advantages of decentralized borrowing and lending over the traditional credit system include the following:
a) Collateralization of digital assets
b) Instant transaction settlement
c) Potential standardization in the future
d) No credit checks
3) Remove Intermediaries with Smart Contract
A smart contract is a special type of algorithm that automates contracts like the deal-making process. Such contracts allow users to exchange shares, proprietary, documents, or money and help sell properties in a hassle-free way. One of the most important features of a smart contract is that you won’t need to use any intermediary services such as brokers, notaries, agents, and more to make a transaction.
It is quite clear that decentralized crypto banking service has brought revolutionary changes in the financial world.
If you are also planning to start your own digital asset banking platform, Antier Solutions can help. We provide a white label crypto bank solution packed with all essential banking functions, including bank accounts, credit/debit cards, payments, trading, lending, and user onboarding. In addition, our finance experts can guide you on compliance and help you acquire the required licenses to offer DeFi crypto banking solutions.
Schedule a free demo of our white label crypto banking solution or connect with our subject matter experts to share your needs for a custom banking solution.