Once, not so long ago, the idea was to bridge the gap between Tradfi and Crypto as so unrealistic that it was naive. After all, Crypto was not conceived as an antidote for the tired financial system with its unbridled money-printing and expensive legacy systems?
How times change. The meteoric rise of mobile banks such as Monzo and Revolut, in combination with the growing acceptance of digital assets and Defi protocols, has given rise to a financial world within a world, a one characterized by open borders, cheap transactions and ease of use.
Today’s banking options are plentiful, with solutions that combine Tradfi with web3 with a large upward swing.
The rise of hybrid financial solutions
The seamless integration of traditional banking services with crypto and Defi possibilities has one winner: the consumer. After all, these solutions offer the best of two worlds – the regulatory compliance and the trusted interface of traditional banking, in combination with the efficiency and transparency of blockchain technology.
Hybrid platforms have been particularly transforming for persons who have been historically subdued by the banking institution, in particular those in the developing countries. Now, instead of submitting a friendly bank manager to let them open an account, these users can quickly board, communicate with Fiat, Crypto or both and without friction to participate in the global economy. All they need is an internet connection.
Examples of this financial revolution are everywhere. Revolut is a platform that has merged conventional banking functions with crypto support, which gives users the opportunity to keep multiple currencies, gain access to virtual and physical payment cards and acting crypto – while enjoying benefits such as travel insurance and access to the airport loung.
Similarly, crypto.com – that claims to have more than 100 million users – has broken down barriers between TradeFi and Defi. Although the crypto-native is, as the name suggests, it works more as a crypto-friendly bank account, the popular VISA card program that offers functions such as free ATM recordings, streaming service improvement (Netflix, Spotify) and even crypto cashback.
In the meantime, the decentralized bank application from Crossfi facilitates cross -border payments and currency versions against a fraction of the costs of traditional transfer services. Due to the unique non-custodial payment card with multiple currencies, users can also publish crypto directly From their web3 wallet, which means that they can maintain fully owned by their funds instead of trusting a trusted custodian.
The platform has its own blockchain, crossfi chain, a powerful layer1 that offers double compatibility with both EVM and Cosmos networks. Within three months after the launch of the mainnet last year last year, more than 500 decentralized applications (DAPPs) were deployed on the network – and the number has continued to rise.
Crossfi users therefore have access to traditional financial services (which are usually offered by Visa, Mastercard, Union Pay), as well as a predominance of Defi apps, from liquid insert protocols to decentralized exchanges (DEXS). Interesting is that Crossfi continues to know your customer (KYC) and Anti-Geldwasgen (AML) and the Payment Card Industry Data Security Standard (PCI DSS) has reached to certify the treatment of customers’ financial information.
Why not both?
With the total value locked (TVL) in Defi by $ 127 billion, traditional banks certainly start to realize that the crypto economy is here to stay. And that they have to include decentralized financial services in their offer sooner or later, otherwise they will lose market share to start fintechs that extend over the worlds of Fiat and Crypto.
The transition between traditional banking services and Defi is always easier, so that users can pay sellers, exchange peer-to-peer, switch between assets, cheap shipping funds to friends and family and earning returns of one simplified dashboard. This model is not only extremely useful, but it represents a lifesaver for the subject, as well as citizens of unstable economies who can exchange their local Fiat in a dollar stabilein whenever they want.
The rise of hybrid fintech solutions is just the beginning. Over time, the functionalities of these platforms will probably expand. Expect in the near future that support is being rolled out for Tokenized Real-World Assets (RWAS), allowing account holders to invest in raw materials such as real estate and art directly from their mobile apps.
As soon as polar contradictions, traditional and decentralized technologies are gradually being together to reform the financial landscape, which transforms it into a completely more accessible industry. A development that just about everyone should please.
