While cryptocurrency gains mainstream adoption across sectors, some traditional financial institutions are beginning to accept it. A recent report revealed that a new Zurich-based fintech, Grow Bank, plans to integrate crypto and fiat currency into its services.
The Swiss startup bank says its platform supports 64 fiat currencies and 20 cryptocurrencies, allowing users to exchange fiat with crypto with very little commission.
Grow Bank positions itself among the first to bring traditional banking and decentralized finance (DeFi) together. This development would mark another milestone in linking traditional and decentralized finance.
Grow Bank To Integrate Traditional Finance And Crypto With Its Services
Individual interests in fintech and the stock market have evolved in how people view banking products. The current financial system is changing people’s focus from a traditional to a more decentralized banking method. Grow Bank leveraged this to announce its hybrid program, offering a Neo banking service that joins crypto and fiat.
According to Grow, it has an e-money and classical banking license, EMI, and FCA, while its users enjoy a cover under Swiss law. Users can open a corporate or personal deposit account using its mobile application. They can also access a debit card and exchange currencies in fiat and crypto. Grow Bank is a Mobile Bank app for managing funds, cryptocurrencies inclusive.
Grow charges a fee of 145 euros annually and 12 euros monthly for personal and corporate cards. The bank issues Grow Token which users can buy and receive dividends on each paid transaction. According to Grow’s official website, the services are available to anyone, including customers in crypto-unregulated countries, at all times.
Grow hopes to offer its customers a fair share of profit while rendering a reliable and convenient integration of digital assets. It makes its services affordable for all by charging minimal fees as commissions while rolling out “smart dividends” to users on every paid transaction. Grow’s website also shows that the startup also runs an affiliate program.
Grow Bank May Gain Traction With The Increasing Demand For Neo-banking Services
Grow’s services appear in the limelight as the cryptocurrency community seeks alternatives to traditional banking after the demise of Silicon Valley Bank and two others. The collapse of Silicon Valley Bank (SVB), Signature Bank, and Silvergate’s bankruptcy dished a notable blow on USDC, sparking reactions among crypto enthusiasts.
A report noted that Coinbase CEO Brian Armstrong is considering adding a banking feature to the exchange’s platform. Armstrong revealed this via a tweet while responding to a community member who suggested that Coinbase add a Neo banking service to bypass traditional banking.
This report came after the SVB collapse that left Circle’s USDC with $3.3 billion of its reserves stuck on Silicon Valley Bank. This issue caused USDC to briefly de-peg from $1 at the time.
Dollar-pegged stablecoins partly depend on the traditional banking system to store their reserves. That is why the Coinbase chief and other concerned crypto industry players seek alternatives to fractional reserve banking to avoid events like SVB, Signature, and Silvergate Banks’ collapse from reoccurring. However, Grow Bank’s model appears to be a shift from the norm.
Featured image from Pixabay and chart from Tradingview.com