Eterbase — the leading EU regulatory-compliant cryptocurrency exchange — recently announced the first high-profile client for its Eterbase Treasury Gateway, Ferrum Network. Ferrum Network will become one of the first clients to tap into the B2B transaction features of Eterbase’s Treasury Gateway.
Naeim Yeganeh, Founder & CEO of Ferrum Network, stated,
“Ferrum could not be more excited to list on Eterbase — a feature-rich exchange that offers numerous benefits to the project and community alike. From the bank account integration to the negative trading fees, Eterbase is showing the world what an exchange experience can be.”
Eterbase, who is coming off a recent announcement of its anti-inflationary EURBASE stablecoin as its new primary trading pair, is gearing up for a thrust of business interest into its Treasury program — with Ferrum Network leading the way.
Many of the current B2B business models involving crypto produce unique friction of their own and fail to wield the underlying potential of blockchains. Many of these initiatives take the form of native, incentive-based token economies that either face regulatory backlashes or transaction friction stemming from persistent needs to convert into and out of fiat currencies and digital assets.
The fragmented regulatory environment has only compounded the problem too, with many banks shunning crypto exchanges and other startups, while only a handful (e.g., Silvergate Bank) appears to support the industry.
Eterbase’s Treasury Gateway is explicitly designed to cater to crypto projects and businesses as a conduit to conventional enterprise business and finance. With Ferrum Network in tow, the Treasury Gateway is off to an impressive start and should spotlight an optimal method to empower crypto projects currently navigating financial barriers.
The Eterbase Treasury Gateway & Ferrum Network’s Integration
Announced in October, Eterbase’s Treasury Gateway relies on a retinue of features that Eterbase has focused on bringing to market from the outset of its launch. Specifically, these include a monetary license via the Majestic Omnibank Payment Platform, corporate crypto-friendly Fiat/SEPA accounts, synthetic IBAN accounts, regulatory compliance, negative trading fees, and direct fiat pairing of tokens.
“By working with our partner Majestic Omnibank, our treasury clients will be able to receive EUR SEPA IBAN in their project’s name, open a payment account, and receive a direct Majestic IBAN for EUR SEPA payments,” details Eterbase in the introductory post of the product. “They will also be able to send and receive EUR SEPA payments across the markets of 28 member states of the European Union.”
One of the pillars of the Treasury Gateway is that it removes the requirement of non-blockchain businesses to have to worry about purchasing digital assets. As a result, legacy enterprises or banks will not have to expose themselves to the underlying risk of having to buy liquid trading pairs like BTC or ETH first or experience high fees associated with many fiat-to-crypto on-ramps with such pairs.
Interposing the need to buy into more liquid pairs first (e.g., BTC and ETH pairs) not only increases fees for non-blockchain enterprises but adds risk and complexity to a convoluted process already. In a market whose ethos is defined by minimizing the role of costly, trusted intermediaries, the B2B exchange dynamic before Eterbase’s Treasury Gateway was contradictory at best.
Incidentally, Eterbase’s negative trading fees actually incentivize market makers, prop shops, and other professional traders (e.g., arbitragers) to provide liquidity to its exchange also.
One of the critical elements of the Fiat/SEPA account is that, for Treasury clients like Ferrum Network, a 2nd synthetic IBAN account is directly accessible via the exchange — along with the initial Fiat/SEPA account. By circumventing the need to purchase BTC or ETH trading pairs first before converting to a lower-cap token, the process only requires one step:
“Because of our direct FIAT pairings of tokens, the project can simply use their token FIAT pair for the purchase, without having to first purchase BTC or ETH. This provides a seamless experience for the client, it’s extremely cost-effective for the project (both in terms of time and money), and it’s 100% transparent.”
And Eterbase’s Treasury Gateway presents some compelling advantages for Ferrum Network’s business model.
Ferrum Network is a blockchain-based FinTech company bringing world-class financial products to emerging markets. The company’s high-speed interoperability network supports financial applications such as fiat gateways, non-custodial wallets, and cold-storage applications designed to empower millions of people around the world by giving them control of their financial lives.
Naiem Yeganeh, Ph.D., and Co-Founder/CEO of Ferrum Network, said,
“The Eterbase treasury gateway fulfills a critical role for Ferrum as we expand our fiat gateway and payments app into more markets and monetize our other products. With the Kudi Exchange expansion into Ghana coming in the next months, and plans to onboard clients to our existing and future products, there are a variety of clients and customers for which a fully transparent treasury gateway is key to our long term success.”
The problems that Eterbase’s Treasury Gateway solve have been continually cited as some of the prohibitive barriers for market entry by many non-blockchain enterprises. At the same time, it helps many blockchain-oriented startups (i.e., Ferrum Network) to attract legacy capital or financial services that have previously remained elusive, serving as a focal point to onboard more non-blockchain clients as well.
Add in Eterbase’s EU regulatory compliance standing, and the Treasury Gateway is highly appealing to many businesses formerly wary about entering crypto.
The positive potential to utilize the reduced transaction costs of crypto was always there, but former exchange models never served B2B transaction needs like Eterbase’s Treasury does.
Moving forward, Eterbase is looking to expand on the Treasury entourage by attracting more clients like Ferrum Network that can bring enterprise liquidity to the exchange, targeting projects that present cross-marketing opportunities, and establishing a 10 percent reward mechanism for successful introductions of future Treasury clients.
Eterbase is excited to onboard more clients for its Treasury Gateway, and the feeling is mutual with its first client, Ferrum Network.
Ian Friend, COO and Co-Founder of Ferrum Network, said,
“We could not be more thrilled to be listing on what we believe will be the fastest-growing exchange of 2020 and beyond.”
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