Grow Bank Merges Crypto and Fiat Currencies in New Swiss Venture
While cryptocurrency is gaining mainstream adoption across sectors, some traditional financial institutions are beginning to accept it. A recent one 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 for crypto with very little commission.
Grow Bank positions itself as one of the first to bring traditional banking and decentralized finance (DeFi) together. This development will mark another milestone when it comes to connecting 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. Today’s financial system is changing people’s focus from a traditional to a more decentralized banking method. Grow Bank took advantage of this to announce its hybrid program, offering a Neo banking service that combines crypto and fiat.
According to Grow, it has an e-money and classic banking license, EMI and FCA, while users are covered under Swiss law. Users can open a business or personal deposit account using the mobile application. They can also access a debit card and exchange currency in fiat and crypto. Grow Bank is a mobile banking app for managing funds, including cryptocurrencies.
Grow charges a fee of 145 euros annually and 12 euros monthly for personal and business cards. The bank issues Grow Token that users can buy and receive dividends on each paid transaction. According to Grow’s official websitethe services are available to anyone, including customers in crypto-unregulated countries, at all times.
Grow hopes to offer its customers a fair share of profits while providing a reliable and convenient integration of digital assets. It makes its services affordable for everyone by charging minimal fees like 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 can gain traction with the growing demand for new banking services
Grow’s services are coming into the spotlight as the cryptocurrency community seeks alternatives to traditional banking following the demise of Silicon Valley Bank and two others. The collapse of Silicon Valley Bank (SVB), Signature Bank and Silvergate’s bankruptcy dealt a notable blow to the USDC, sparking reactions among crypto enthusiasts.
ONE 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 afterwards The SVB collapse who left Circle’s USDC with $3.3 billion of the reserves stuck at Silicon Valley Bank. This problem led to the USDC card unlink from $1 at the time.
Dollar-pegged stablecoins rely in part on the traditional banking system to store their reserves. That is why the Coinbase CEO and other concerned crypto industry players are seeking alternatives to fractional reserve banks to avoid a repeat of events like the collapse of SVB, Signature and Silvergate Bank. However, Grow Bank’s model appears to be a shift from the norm.
Featured image from Pixabay and chart from Tradingview.com