Digital Transactions Authoritative, insightful and timely information for payments professionals
Digital-currency operators are working behind the scenes despite a depressed outlook brought on by the collapse of the major exchange FTX and a general rout in most cryptocurrency values. One example is Mercuryo, a London-based fintech, which on Friday said it has introduced a banking-as-a-service (BaaS) application that enables digital-asset organizationsto provide their customers with the ability to store, transfer, spend , and convert fiat currencies to cryptocurrencies in a single platform.
Clients targeted for the new service include cryptocurrency exchanges, wallet providers, and NFT services.
The BaaS move addresses a long-running problem crypto companies have faced, Mercuryo says. Cryptocurrency users in the United Kingdom and the European Union will have access to instant single euro payments area (SEPA) transfers via their own international bank account number accounts for buying, selling, and storing digital assets, according to the company.
SEPA is a pan-European network that allows consumers to send and receive payments in euros between two cross-border bank accounts in the eurozone.
In addition, companies can offer banking products to their clients through integrations without having to receive their own licenses. Instead, Mercuryo says it will be responsible for handling all-know-your-customer and anti-money laundering procedures.
“Mercuryo seeks to become a one-stop-shop for both conventional and crypto-native platforms that seek to seamlessly integrate financial infrastructure for crypto and fiat payments alike,” Mercuryo chief executive and co-founder Petr Kozyakov says in a prepared statement. “Introduction of our BaaS product is a major step in bringing the two worlds together, and we are already seeing great demand for it among our partners and beyond.”
In related news, cryptocurrency platform Bakkt Holdings Inc. announced its 2022 earnings and its financial outlook for 2023. Net revenues totaled $54.6 million, up 38% from a year earlier. The increase was driven primarily by higher customer activity in Bakkt’s loyalty-redemption business, the company says.
Transacting accounts totaled 3 million, up 16% from the previous year, and digital-asset conversion volume totaled $832.3 million, a 51% increase from 2021. The increase in digital-asset conversion was driven in large part by loyalty redemption related to increased travel activity, Bakkt says.
For 2023, Bakkt is projecting a 15% to 30% increase in net revenues to between $62 million and $72 million. The company also expects its $200-million acquisition of Apex Crypto LLC to close in the first half of 2023. Bakkt in November reached an agreement to acquire Apex.
