Embedded finance providers are reducing the barriers to integrate cryptocurrency into day-to-day life

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In 2021, the digital asset industry experienced strong growth, which has provided embedded finance providers with unique opportunities to target a larger consumer base. According to PayNXT360’s Q4 2021 Embedded Finance Market Survey, these companies are further building strategic partnerships with blockchain data platforms to compliantly expand their offerings to cryptocurrency businesses. For instance,

• In March 2022, Cross River, a financial services company that offers core infrastructure and embedded financial solutions, entered into a strategic partnership with a blockchain data platform, Chainalysis. Cross River, which provides financial services to the fintech firms and crypto sectors, will leverage Chainalysis to expand its portfolio to additional cryptocurrency businesses through this partnership. 

On the other hand, embedded finance providers collaborate with cryptocurrency exchange platforms to expand their crypto services for their customers. For instance,

• In March 2022, Alviere also integrated crypto services into its embedded finance platform, The HIVE. The company, which has an array of financial products and services, entered into a partnership with Coinbase Prime, a service of Coinbase Global Inc. to provide crypto services to customers, fans, and employees.
• Under this partnership, Coinbase Prime will offer Alviere with Coinbase Prime Platform and crypto infrastructure. This will particularly help Alviere integrate crypto services into its HIVE platform, including custody and execution of digital assets. Notably, under Alviere’s state-by-state money transmission licenses, Alviere Crypto Services will now be available in the United States, allowing the end users of Alviere’s programs to buy, store and sell select digital assets like BTC, ETH, LTC, and USDC. 

Though the total market capitalization of all cryptocurrencies is expanding globally, it has not become mainstream in consumer’s life. Notably, the majority of the businesses still rely on traditional lenders for their retail banking; however, most of these institutions lack the technological capacity to transact cryptocurrencies. The only way out is an embedded finance platform creating flexible solutions that can integrate with banks and retailers. Consequently, by making cryptocurrency accessible to more financial and non-financial partners, the consumers will be able to start integrating it into their day-to-day lives.

To know more and gain a deeper understanding of the global embedded finance market, click here.