Payments company Nium launched the first global Crypto-as-a-Service (CaaS) solution earlier today. It will offer in-demand crypto products to financial institutions, by integrating its API-based crypto capabilities.
In addition, it also announced the extension of its Banking-as-a-Service (BaaS) solution to the U.S. In context of its offerings, the official release stated,
“The cryptocurrency investment services will support five cryptocurrencies in the U.S. in 2021, with the list of supported currencies growing to 20 in 35 countries in 2022.”
The company commented that it was tapping the $2.19 trillion crypto market with its latest offering. So that, banks, businesses, and neo-financial institutions can also “quickly capitalize on this demand.” The service will include buying, selling, and holding crypto along with KYC, regulatory and compliance monitoring, brokerage, custody, and processing of the cryptocurrency.
Available for cryptos such as like Bitcoin, Ethereum, and Litecoin, will be provided in association with Paxos Crypto Brokerage. Further, institutions will be given an option to convert their crypto investments into stablecoin holdings as well.
As per the statement, the stablecoin Pax Dollar USDP is regulated, and 100% backed by US Dollars and cash equivalents. It added that the “future service elements will allow for stablecoin wallets, as well as crypto acceptance.”
Prajit Nanu, co-Founder, and CEO at Nium stated,
“With seamless API-based connections, we offer access to modular fintech elements for payments and card issuing – and now, crypto. The elements can be embedded, fast and easy, into most applications, helping companies go further, faster.”
Having said that, Nium was also reportedly eyeing an IPO in the US. The Singapore-based company plans to go public in the next one to two years to benefit from the crypto demand.
CoinShares’ weekly digital asset fund report pointed out that the United States could see significant inflows in the coming weeks on the back of Bitcoin’s future-based ETF. All in all, digital asset investment products saw inflows totaling $80 million last week.
Not just in the past week, a recent Fidelity report also found that 7 in 10 institutional investors expect to invest in digital assets in the future. Just last week, a report also cited Multicoin Capital’s plans to raise $250 million for a crypto fund.
