As cryptocurrency gains mainstream adoption across all sectors, some traditional financial institutions are beginning to accept it. A new report announced that a new Zurich-based fintech, Grow Bank, plans to integrate crypto and fiat currencies into its services.
The Swiss startup bank said its platform supports 64 fiat currencies and 20 cryptocurrencies, allowing users to exchange fiat for crypto with low commissions.
Grow Bank is one of the first to combine traditional banking and decentralized finance (DeFi). This development will mark another milestone in bridging traditional and decentralized finance.
Growing Bank To Integrate Traditional And Crypto Finance With Services
Individual interest in fintech and the stock market has evolved in the way people view banking products. Today’s financial system is changing people’s focus from traditional banking methods to more decentralized banking methods. Grow Bank used this to announce a hybrid program, offering a Neo banking service that combines crypto and fiat.
According to Grow, it has e-money and classic banking licenses, EMI, and FCA, while users enjoy coverage under Swiss law. Users can open corporate or personal deposit accounts using the mobile app. They can also access debit cards and exchange currencies in fiat and crypto. Grow Bank is a Mobile Bank application for managing funds, including cryptocurrencies.
Grow charges a fee of 145 euros per year and 12 euros per month for personal and corporate cards. The bank issues Grow Tokens that users can buy and receive dividends on every paid transaction. According to Grow’s official websiteservice is available to anyone, including customers in crypto-unregulated countries, at all times.
Grow hopes to provide fair returns to its customers while providing reliable and convenient digital asset integration. This makes the service affordable for all by charging a minimal fee as a commission while issuing a “smart dividend” to users on every transaction paid. Grow’s website also indicates that the startup also runs an affiliate program.
Grow Bank May Increase Traction By Increasing Demand For Neo-banking Services
The Grow service is in the spotlight as the cryptocurrency community looks for an alternative to traditional banking after the demise of Silicon Valley Bank and two others. The collapse of Silicon Valley Bank (SVB), Signature Bank, and the bankruptcy of Silvergate dealt a significant blow to the USDC, prompting a backlash among crypto enthusiasts.
A report noted that Coinbase CEO Brian Armstrong is considering adding banking features to the exchange’s platform. Armstrong announced this via tweet while responding to a community member who suggested that Coinbase add Neo banking services to bypass traditional banking.
This report comes after SVB collapsed the left Circle’s USDC with $3.3 billion of reserves stuck at Silicon Valley Bank. This issue plagued the USDC for a while de-peg from $1 in time.
Dollar-pegged stablecoins partially rely on traditional banking systems to hold reserves. That’s why Coinbase chiefs and other concerned crypto industry players are looking for alternatives to fractional reserve banking to avoid the collapse of SVB, Signature, and Silvergate Banks. However, the Grow Bank model is seen as a departure from the norm.
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