Cryptocurrency has quickly grown from a niche investment choice to a multi-trillion-dollar market.
Traditional financial institutions are also attempting to determine their place in the sector. 95% of banks are willing to invest in blockchain or distributed ledger technology to some extent.
Banks are becoming more amenable to implementing blockchain technology and cryptocurrencies as a result of the cryptocurrency industry’s expansion.
Blockchain startups collaborate with traditional FIs to introduce cryptocurrency
These leading blockchain companies are collaborating with banks to introduce blockchain-enabled and cryptocurrency solutions.
1Coinbase
Coinbase claims to be the most used cryptocurrency exchange in the world for buying and selling cryptocurrencies.
In 2012, it was established in San Francisco.
The platform offers more than 90 different varieties of cryptocurrencies, making it simpler for dealers to locate a variety of coins under one roof. The exchange offers a number of well-known coins, including Litecoin, Ethereum, and Bitcoin. Fiat currencies like the dollar and the euro are accepted as deposits at Coinbase, and payouts are also permitted. Similar to a bank, it also serves as a watchdog over user funds.
Each quarter, $547 billion worth of cryptocurrencies are traded on Coinbase by its approximately 89 million registered users.
The company doubled the number of Custody customers in 2021, and its Institutional customer base increased by over 50%. It introduced Coinbase Prime, its integrated response to institutional cryptocurrency requirements.
It provides the following services to FIs:
Prime
Coinbase Prime is a brand-new platform created specially to offer a variety of services and tools that institutional investors rely on while trading cryptocurrencies, all in one location.
Exchange
With a dynamic fee structure for high-volume trading, Coinbase bills itself as one of the world’s most liquid and regulated cryptocurrency spot exchanges. To introduce cryptocurrency trading to its customers, FIs can cooperate with Coinbase.
Among the FIs that Coinbase cooperates with are:
Ally Bank
Ally Bank is a bank that only operates online. Customers can purchase cryptocurrencies with their debit card or credit card by connecting their accounts to Coinbase using the platform provided by Coinbase.
USAA
USAA – A Coinbase cryptocurrency account may be connected to a USAA account. Although customers can’t make purchases through their USAA accounts, they can examine their Coinbase balances and keep track of transactions.
MetaBank
In collaboration with MetaBank, Coinbase issues its Coinbase Card. With this Visa debit card, customers may use whatever digital asset they have in their Coinbase holdings to make purchases, convert them to dollars, and receive rewards.
2Fireblocks
A blockchain service provider for transferring, storing, and distributing digital assets is Fireblocks. In 2018, it was established in New York.
To custody, manage treasury operations, access DeFi, mint and burn tokens, and manage their digital asset operations, many crypto and digital asset organizations use Fireblocks software and APIs. 25 blockchains are supported by Fireblocks for custody.
In 2021, Fireblocks quickly expanded from 150 to over 800 customers, reaching $2 trillion in assets moved over blockchain.
Fireblocks received $550 million in Series E fundraising in January 2022, raising the company’s worth to $8 billion.
Fireblocks stated in February 2022 that it has paid a reported $100 million for First Digital, a stablecoin and digital asset payments technology platform.
The services that Fireblocks provides to FIs are as follows:
Fireblocks Wallet Infrastructure
Fireblocks is a multi-layer security system that combines hardware isolation and the MPC-CMP algorithm. This lessens the chance of a single point of failure and protects digital assets against external and internal conspiracies as well as human mistake. Customers can choose between hot, cold, or warm temperatures for their wallets using MPC-CMP.
Fireblocks Network
For quick settlement, rebalancing, and payments, the Fireblocks Network connects its institutional clients to over 30 exchanges and 950 tokens, together with over 500 liquidity partners, trading venues, and counterparties. The Fireblocks Network manages and automatically rotates deposit addresses among counterparties to protect against internal fraud, external fraud, and human mistake.
Multi-layer Security
The Policy Engine, Intel SGX, and MPC are the layers of the multi-layer security matrix.
Several clients of Fireblocks are:
Revolut
Revolut supports crypto services for its 18 million worldwide retail consumers by utilizing the Fireblocks MPC-based wallet service and network infrastructure.
Bankhaus von der Heydt
The 267-year-old privately held German bank, Bankhaus von der Heydt, incorporated Fireblocks’ custody technology together with the Fireblocks Network to increase the range of digital asset and cryptocurrency services it provides to its clientele.
FV Bank
FV Bank, a digital asset custodian based in Puerto Rico, collaborated with Fireblocks to integrate the Fireblocks MPC-based wallet service and network infrastructure for its users.
3Anchorage Digital
A platform for digital assets, Anchorage Digital provides custody, trading, financing, staking, and governance services.
In January 2021, Anchorage Digital became the first digital asset bank to hold a government charter. In 2017, it was established in San Francisco.
A digital asset bank with federal chartered status serves as the custodian of digital assets for governments as well as financial organizations including banks, venture capital firms, and fintechs. For storing and safeguarding cryptocurrency, it makes use of hardware security modules and biometric authentication.
Anchorage Digital completed a $350 million Series D investment round in December 2021, giving them a $3 billion valuation.
It provides the following services to FIs:
The infrastructure that businesses utilize to create bitcoin goods is interwoven with lending, trading of digital assets, finance, staking, and governance.
Among the FIs it collaborates with are:
Finxact
Anchorage Digital teamed up with the banking core Finxact to give users access to new cryptocurrency goods and services through banks and financial service providers.
BankProv
Few banks in the nation, including BankProv, provide deposit services to brokers, institutional investors, and cryptocurrency exchanges. The partnership enables Anchorage to offer Ethereum-backed loan solutions to BankProv’s institutional clients.
