The Crypto Banking Landscape of 2022 – CryptoMode
Bear markets are very difficult times for investors and speculators. However, crypto banks also struggle, as they have to try to grow an audience. Interestingly, things are slowly falling into place for some projects, while others lag behind.
Top Crypto Banks
The term “crypto banks” may seem counterproductive to many people. Cryptocurrencies and banks are almost the opposite of some, although they are not too different in reality. Many projects pursuing this label offer services and products that one would find in a bank, even if the underlying infrastructure is very different.
By recent results by the National Crowdfunding and Fintech Association of Canada, the landscape has become rather intriguing. Top-tier crypto banks, such as BlockFi, Nexo, Crypto.com, Abra, and CryptoPay, all offer various products and services. These solutions can include borrowing and lending, institutional services, corporate treasury, corporate loans, or even accepting NFT as collateral. This last feature remains very experimental, however, for obvious reasons.
The “little gods” among crypto banks all seem to be focused on the same concepts: a way to earn and save, buy cryptocurrency, and trade. Depending on the provider, one can access borrowing and lending or merchant integrations. This last part should be much more important, and Crypto.com, Nash, Eco and Zengo all recognize its importance. Getting more people into crypto remains essential, but it remains a tricky ordeal.
A key metric is determining the number of proclaimed users of these crypto-banks. It is difficult to find precise figures, because these companies are not too keen on publishing this data. Crypto.com serves over 50 million users, while Yield App has yet to surpass 100,000. It’s also curious how Youhodler, Coin Loan, Abra, and Nash never disclose user numbers. In an industry where transparency is an essential aspect, being opaque is not the smart game.
Licensing remains an obstacle
All crypto banks will agree on how difficult it is to acquire [new] licenses. However, BlockFi and Youhodler have managed to do this, although Crypto.com has registered and obtained regulatory approval in various regions throughout 2022. These are laborious but necessary steps to gain legitimacy and attract users. General public.
A final curious observation is how less than half of these crypto banks have a native token. Yield App has such a token, unlike Coin Loan or Youhodler. BlockFi also has no plans to create a token at this time. Additionally, one has to wonder if more crypto banks are willing to support NFTs as collateral, as this is still a rather risky business.
CryptoMode produces high quality content for cryptocurrency companies. To date, we’ve provided brand visibility for dozens of companies, and you can be one of them. All our customers appreciate our value for money ratio. Contact us if you have any questions: [email protected]
None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses incurred while acting on the information provided on this website by its authors or customers. No advice should be taken at face value, always do your research before making financial commitments.