In a strategic move to address the complexities of converting cryptocurrencies into fiat currency, Fiat24 — a Swiss financial institution — has joined forces with SafePal, a crypto wallet provider, to launch a crypto Visa debit card with an in-app banking service.
With all its advancements and the promise of financial freedom, the decentralized finance (DeFi) sector still presents a considerable challenge for users who want to convert their cryptocurrencies into fiat. The current process involves multiple time-consuming steps that come with the risk of incurring high fees and experiencing significant delays due to how blockchain transactions work.
To minimize slippage fees on decentralized exchanges (DEX), users look to split their orders across multiple trades in different withdrawal times, adding to the complexity and potential inconvenience.
Cross-”Chain” bridge: From Arbitrum to IBAN
The unnecessary complexity of a simple cash-out — or crypto off-ramp in Web3 jargon — poses a significant barrier for everyday uses, hindering the crypto adoption for daily transactions and financial management.
This is where the innovative partnership between the financial institution Fiat24 and crypto wallet provider SafePal comes into prominence. Together, they announced a crypto Visa debit card coupled with an in-app banking service to bridge the gap between digital assets and traditional banking, offering users a seamless experience for managing their finances across both realms. Akin to a cross-chain bridge that seamlessly connects crypto assets with fiat assets, Fiat24 facilitates the fluid transition of digital currencies into the traditional monetary system, bypassing the conventional complexities.
Featuring a protocol-to-protocol integration, the banking module operates independently from the wallet. This independence ensures that the banking service can be utilized in combination with any DeFi protocols. Additionally, the fiat gateway is open for not only centralized exchanges but also for DEXs like Uniswap, broadening the utility and access for users across the DeFi ecosystem.
Banking module for DeFi
Fiat24 stands out as a Swiss-licensed and regulated financial entity that innovatively uses public blockchain technology to facilitate transactions. By operating on the Arbitrum blockchain, Fiat24 ensures transparency and security for its users, offering a unique blend of DeFi and traditional banking (TradFi) services. The platform acts as a dynamic bridge between the digital and traditional financial worlds, enabling seamless transactions within the DeFi space and the broader financial world, including direct connections to major payment systems like SWIFT and SEPA.
Users can utilize their Swiss IBAN (International Bank Account Number) to send and receive money as they would with any other bank account, all while being connected to their preferred noncustodial crypto wallet and accessed by the Fiat24 nonfungible token (NFT).
Fiat24 functions as a modular banking protocol, capable of independent operation or seamless integration with a variety of DeFi protocols, including DEXs, lending platforms and staking services. This flexibility is achieved through the Lego principle, allowing for versatile combinations with other DeFi elements.
Fiat24’s new partner, SafePal, offers a comprehensive crypto wallet suite that provides hardware wallet, mobile app and browser extension wallet solutions. With the backing of industry giants like Binance Labs and Animoca Brands, SafePal serves over 10 million users worldwide. The platform supports an impressive array of blockchains and tokens, providing users with comprehensive tools for managing their crypto assets securely and efficiently since its foundation in 2018.
Effortless conversion of crypto
The new joint service uses USD Coin (USDC) as the default deposit currency, leveraging the collaboration with Circle, a global financial technology firm, to enhance the accessibility and ease of crypto transactions. By picking one of the most widely-used stablecoins as the deposit cryptocurrency, Fiat24 and SafePal aim to mitigate the common onboarding challenges faced by newcomers to the crypto space, making the transition smoother and more user-friendly.
Through their collaboration with Circle and the focus on USDC, Fiat24 and SafePal strive to establish a new standard for ease and effectiveness in the conversion of digital currencies to fiat. This approach broadens access and simplifies the introduction to digital finance for users globally, ensuring a smoother transition into the crypto ecosystem.
As this partnership unfolds, it promises to unlock new possibilities for financial autonomy and inclusivity, heralding a new era where managing digital and fiat currencies is not just possible but effortless.
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