Peter Zhang Jul 24, 2024 15:42
Baanx and Tezos introduce the first non-custodial on-chain crypto card, leveraging Etherlink for secure, efficient, and user-friendly payments.
Baanx and Tezos have unveiled the first non-custodial on-chain cryptocurrency payment card, revolutionizing the decentralized finance (DeFi) landscape. According to Tezos Spotlight, this innovative card leverages Etherlink, a Smart Rollup blockchain powered by Tezos, to provide users with full control over their cryptocurrency assets.
Bridging Traditional Finance and Web3
Baanx aims to bridge the gap between traditional finance and Web3 by integrating established financial systems with the advanced capabilities of the Tezos blockchain. The new crypto card offers lower fees, faster transactions, and enhanced financial autonomy compared to traditional payment methods. Baanx's Chief Commercial Officer, Simon Jones, highlighted the growing use of cryptocurrency cards, particularly among the 25-44 age demographic, and the potential market size, given the global payments industry's valuation of $2.4 trillion and approximately 1.4 billion unbanked individuals.
The use of cryptocurrency cards is growing, especially among the 25-44 age demographic. The potential market is vast, with the global payments industry valued at $2.4 trillion and approximately 1.4 billion people unbanked. Baanx aims to replace traditional banking with technology, offering financial services to anyone with a mobile phone.
Non-Custodial On-Chain Crypto Payments
Current Web2 and Web3 payment solutions often fail to offer users full control over their assets, leading to security risks and inefficiencies. Traditional banks and existing crypto payment solutions typically require users to hand over control to third-party custodians, increasing counterparty risk and imposing high fees and slow processing times, particularly for cross-border transactions.
The non-custodial solution introduced by Baanx and Tezos addresses these issues by allowing users to maintain full control over their assets. This approach enhances security by ensuring that private keys are kept by the users, reducing the risk of hacks and unauthorized access.
Baanx Crypto-Fiat Debit Card
The new on-chain debit card leverages Etherlink, an EVM-compatible layer 2 blockchain powered by Tezos, providing a secure, efficient, and user-friendly payment method. The card offers several key benefits:
- Self-custody: Users retain full control over their cryptocurrency assets, adhering to the principle of “your keys, your crypto.”
- Fast and low-cost transactions: Etherlink ensures sub-second block times and significantly lower gas fees, making real-time payments practical and affordable.
- Financial inclusion: The solution empowers millions of unbanked individuals with advanced financial services by offering lower fees and faster transactions.
- Intuitive User Interface: The card’s UI is designed to make the user experience smooth and straightforward, allowing easy wallet linking, spending limit settings, and fund management.
- Decentralized approach: Tezos Smart Rollups are supported directly by the Tezos protocol, enabling high decentralization without the need for complex smart contract workarounds and centralized sequencers.
How the Card Works
The debit card will be available in physical and virtual formats and via Google and Apple Pay. It enables online and in-person crypto purchases and cash withdrawals at supported ATMs through seamless crypto-to-fiat conversion. Linking the card to a wallet requires a quick sign-up and an on-chain transaction to delegate funds. Users can set spending limits and manage their card through an intuitive UI. The card employs account abstraction and delegation, ensuring users retain custody of their funds until they are ready to spend them, and supports multiple funding sources, transforming the wallet into a super account.
Driving Mass Adoption
Baanx is driving mass adoption of crypto payments by seamlessly integrating with popular cryptocurrency wallets like Ledger, Exodus, Trust Wallet, and 1inch. These wallets provide secure, user-controlled cryptocurrency management and DeFi integration with multi-currency support and user-friendly interfaces across various platforms. Global expansion is also on the cards, with Baanx initially targeting Europe and the UK, aiming to attract one million users within the next 12 months and expand to the United States, Latin America, and Asia.
A Promising Future for Cryptocurrency Payments
By addressing critical issues in security, accessibility, cost, and user experience, the new payment solution from Baanx and Tezos paves the way for a decentralized, self-custodial financial future. This innovative solution offers a promising alternative to traditional banking systems and advances the global adoption of cryptocurrency payments.
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