Crypto Banks Landscape Of 2022 – CryptoMode
Bear markets are very tough times for investors and speculators. However, crypto banks are having a tough time as well, as they have to try to grow an audience. Interestingly, things are slowly coming together for some projects, while others remain behind the curve.
The Prominent Crypto Banks
The term “cryptobanking” may sound counterproductive to many people. Cryptocurrencies and banks are almost polar opposites to some, although they are not that different in reality. Many projects pursuing this brand offer services and products one would find through a bank, although the underlying infrastructure is very different.
As of recently findings by the National Crowdfunding and Fintech Association of Canada, the landscape has become quite exciting. The top crypto banks, such as BlockFi, Nexo, Crypto.com, Abra and CryptoPay, all offer different products and services. These solutions can include borrowing and lending, institutional services, corporate treasury, corporate loans or even acceptance of NFT as collateral. However, the latter feature remains highly experimental, for obvious reasons.
The “minor gods” among cryptobanks all seem to focus on the same concepts: a way to earn and save, buy cryptocurrency and trade. Depending on the provider, you can get access to loans and lending or dealer integrations. That last part should be far more prominent, and Crypto.com, Nash, Eco and Zengo all recognize its importance. Getting more people into crypto is still important, but it’s still an uphill battle.
A key metric is to find out how many proclaimed users these crypto banks have. It is difficult to find exact figures, since these companies are not very keen to publish this data. Crypto.com serves over 50 million users, while Yield App has yet to cross 100,000. It’s also curious how Youhodler, Coin Loan, Abra and Nash never reveal user numbers. In an industry where transparency is a core aspect, it is not smart to be opaque.
Licensing is still an obstacle
All crypto banks will agree on how troublesome it can be to acquire [new] licenses. However, BlockFi and Youhodler succeeded in doing so, although Crypto.com has registered and received regulatory approval in various regions through 2022. These are painstaking but necessary steps to gain more legitimacy and attract mainstream users.
A final curious observation is how less than half of these crypto banks have a native token. The Yield app has such a token, while Coin Loan or Youhodler do not. BlockFi also has no intention of creating a token for now. Also, one has to wonder if more crypto banks want to support NFTs as collateral, as it is still quite a risky endeavour.
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