Leading British Fintech firm Revolut is spreading its crypto trading services to the United States. Revolut’s customers in 49 U.S. States can now buy, sell and hold Bitcoin and Ethereum using the digital bank’s cryptocurrency platform. The state of Tennessee is the only exclusion.
The London-based Fintech firm launched a debit card in the United States in Match this year. However, the card lacked some essential features and especially those associate with cryptocurrencies.
Lowering the Barrier
The firm has now partnered with Paxos to offer users in 49 U.S. states the ability to buy BTC and ETH in a single step. The new App enables users to store cryptocurrencies and cash out instantly. The company’s press statement says there are no hidden fees associated with buying and selling cryptocurrencies. The exchange rate that’s displayed is the rate the customers’ will pay. Paxos CEO Chad Cascarilla said:
“What’s exciting about it is really lowering the barrier of entry for firms to get into crypto […] you can plug into our APIs, and we’ll provide you the regulatory ability and the technological capabilities to offer crypto for buying or selling.”
By using Paxos’ plug and play brokerage service, the bank can now afford users crypto trading services without having to deal with technological and regulatory hurdles that U.S. cryptocurrencies exchanges have been facing. Paxos will now handle the regulatory matters since the U.S. Trust company will be Revolut’s cryptocurrency custodian. Revolut CEO Nik Storonsky stated:
“To expand our crypto offering to U.S. customers, we had to find a trusted partner. We chose Paxos Crypto Brokerage because their turnkey solution is fully compliant and easy to integrate.”
Spare Change Back Into Cryptocurrency
Revolut’s style of storing cryptocurrency differs significantly from the ordinary non-custodial wallet. Users will only be able to send and receive crypto from Revolut users. According to the company’s spokesperson, customers will not yet be able to transfer cryptocurrencies to external wallets. However, that’s an area that the company will be addressing in the next step.
Other salient features include the ability to round up card payments to the nearest whole dollar besides converting the spare change back into cryptocurrency. Revolut already offers its European customers access to extra cryptocurrencies like Litecoin, Bitcoin Cash and XRP. The firm says it will provide access to other coins in the “near future,” in the U.S. as well.
Increasing Demand for Crypto Services
On matters Fintech, Revolut head of crypto Ed Cooper said they appreciate Paxos’ business model due to the increasing demand for crypto services. He said the company would encourage users to invest in crypto using spare change round-up service. He added:
“When there is a gold rush, sell spades.”
As Binance readies its Crypto card Europe launch, investors are eyeing the bitcoin space. Companies like PayPal eying the market, and others like Coinbase are going public. It looks like Covid-19 has lit a fire under the bellies of individuals and institutions globally.