Top Fintech Companies Utilizing Cryptocurrencies
Over the last few years, cryptocurrencies have gained in popularity and in their impact on global financial markets. Many financial experts have concluded that because cryptocurrencies are thriving, government and other major institutions, including Fintechs, are going to have to accept them as legitimate forms of currency. Here we’re looking at the top Fintech companies utilizing cryptocurrencies.
What is a Fintech company?
So, what exactly is a Fintech company? In short, Financial Technology (Fintech) is the term used to describe new technology that works to improve and automate financial services. Fintech is used by companies and business owners to manage various aspects of their businesses and lives, usually through software on smartphones and computers.
Fintech companies are businesses that work to develop the software and algorithms behind Fintech, and help supply new technology-based financial services and solutions to businesses and consumers. Over the last few years, Fintech has also started to include the development and utilization of cryptocurrencies and blockchains such as Bitcoin.
What is Cryptocurrency?
A cryptocurrency is a form of digital money, it is decentralized and operates outside of a central authority, like a bank or a government. The first cryptocurrency every invented was Bitcoin (BTC), which made way for the 1000s of coins that we see today (such as Ripple, Ethereum, and Litecoin). Cryptocurrencies can be used for so many different things — cross border transactions, online payments, investments — you name it, there’s a coin for that!
What is Blockchain?
Blockchain is the technology that a cryptocurrency is based on. Essentially, it’s a distributed ledger that records and allows for the transaction of its cryptocurrency. With that being said, blockchain tech can be utilized in so many different ways — including in Fintech.
How can Blockchain and Cryptocurrency Benefit the Fintech sector?
Maybe you’re asking yourself exactly how blockchain and cryptocurrency can benefit the Fintech sector. To start, Blockchain technology could help to speed up bank-to-bank transactions. For example, Bitcoin’s secure cross-border transactions are completed much faster than any bank-to-bank transactions that currently exist (which can take from 24 hours to several days). In a Fintech scenario, using a blockchain would help to mitigate this problem by improving both transaction speeds and security.
Fintech companies would also be able to build smart contracts on a blockchain, which would allow the facilitation of any transaction that could be digitally represented (cryptocurrency, fiat currency, even physical goods). This could open up a world of opportunities within the finance and banking realms.
Some Fintech Companies already using Cryptocurrencies
We have already seen some of the world’s top Fintech companies utilizing cryptocurrencies — and it’s only the beginning. Seba Crypto AG, a Swiss financial services company, gathered over $104 million USD from investors in order to set up the first cryptocurrency bank in the world. Their idea is to allow their customers to access, and trade with, both crypto and fiat currency from the same bank account.
JPMorgan Chase announced in the beginning at 2019 that they were planning to launch their own coin, JPM. JPMorgan Chase stated that their coin would allow their customers to engage in instant transfers over a blockchain, and to have a lower risk of fraud. The coin can be redeemed for USD, and can only be transferred to other JPMorgan Chase clients.
Cryptocurrencies: The Future of Fintech?
Cryptocurrencies and blockchain are finally being taken seriously by governments as well as the banking and financial services industries, and it’s about time! Cryptocurrency has massive potential particularly within the Fintech industry, as it can make for vastly more safe, efficient and faster transactions within the sector.
Many businesses are sitting up and taking notice, with top Fintech companies utilizing cryptocurrencies and blockchain for the very first time. This technology can have massive beneficial impact on the Fintech industry, and it seems that they’re finally catching on to just how useful crypto can be.
So, are cryptocurrencies the future of Fintech? Judging by the top fintech companies utilizing cryptocurrencies, we’re inclined to agree. They certainly have a vital role to play. Find a selection of over 1000 cryptocurrencies fuelling several industries (not just fintech) on Vertex.Market. This peer-to-peer platform allows anyone to trade crypto no matter where in the world you might be.