Fintech company Simplex has released an online B2B crypto banking solution that could allow far-flung global customers the same regulated security as consumer banks. Known as Simplex Banking, the new product allows Simplex partners to offer their clients the chance to purchase and trade cryptocurrency by granting them a unique IBAN (International Bank Account Number), a feat made possible by Simplex’s EU banking license.
Simplex Banking also incorporates a wide selection of payment services from all corners of the globe, including SEPA and SWIFT, with JCB (Bank of China), CUP (China Union Pay), and Yandex (Russia) set to be added in the near future.
The product is designed to ease the process of onboarding to cryptocurrency from fiat currencies by side-stepping limitations and restrictions placed on payment providers in local jurisdictions. A one-time KYC (Know Your Customer) process is still required, after which users are free to make limitless cryptocurrency purchases. More than 1 million euros worth of deposits have been processed since a beta version of the Simplex Banking service launched a few weeks ago.
Reinventing Crypto Finance
The Simplex Banking account supports over 45 digital currencies, features an optional Visa debit card, and is free to sign-up and use. The solution can also be natively integrated into existing cryptocurrency exchanges, wallets, and payment apps.
Simplex commenced operations in 2014 and was a pioneer in the field of creating fiat-to-crypto onramps. Announcing the launch of Simplex Banking, CEO Nimrod Lehavi said: “Simplex has forged new methods of enabling mainstream adoption of crypto assets, through the seamless and safe purchase of cryptocurrencies with credit and debit cards. Simplex Banking is the natural expansion of our offering, fiting the growing needs of the market, namely to easily buy and sell crypto assets, safely, with no maximum limits and a range of payment options.”
The Evolution of Online Banking
According to a recent report by consulting and advisory firm Cornerstone Advisors, more Americans than ever are turning to online banking as their primary means of managing their finances.
Despite the gradual changeover to digital, Cornerstone’s report reveals that just 20% of executives in the traditional banking sector view online financial management as a real threat to their business.
Silicon Valley disagrees, however, as evidenced not only by the rush by Facebook to corner the online market with its efforts to launch Libra, but also the recent announcement that online payments giant PayPal would open its doors to cryptocurrency users.
In addition to allowing the purchase and sale of cryptocurrencies through its online account, PayPal also announced it would begin offering storage solutions for various digital currencies, including Bitcoin, Ethereum, Litecoin and Bitcoin Cash.
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