Interpreting the Web3 Banking Protocol Fiat24

Forward the Original Title ‘解读Web3银行协议Fiat24：DeFi乐高游戏新玩法，进一步打通与现实世界的交互’

Cointelegraph recently reported on the strategic cooperation between Web3 banking protocol Fiat24 and Safepal DApp wallet: Fiat24 launched an in-DApp Web3 banking gateway and virtual encrypted payment Visa card for Safepal DApp wallet to enhance the ease of use of DApp wallet and further connect with reality. world interaction.

Cointelegraph recently reported on the strategic cooperation between Web3 banking protocol Fiat24 and Safepal DApp wallet: Fiat24 launched an in-DApp Web3 banking gateway and virtual encrypted payment Visa card for Safepal DApp wallet to enhance the ease of use of DApp wallet and further connect with reality. world interaction.

Combined with our previous investment research article “Fiat24: Web3 Bank Built on the Blockchain”, we can see that the Fiat Layer Protocol built by the Web3 banking protocol is playing an active role in the Blockchain Network:

1. After moving the banking business logic to the chain, the protocol layer can be seamlessly connected with DApp/DeFi;

2. Provide users with U-based Web3 on-chain banking services;

3. Bring innovative logic of legal currency business to DApp/DeFi.

This article will first introduce the strategic cooperation between Fiat24 and Safepal, and then further explain how the Web3 banking protocol opens up the infinite imagination of the DeFi Lego game.

（Singaporean fintech launches USDC-powered Visa card with Swiss bank Fiat24）

1. Seamlessly grafting Safepal DApp wallet

On March 8, the Safepal DApp wallet strategically invested by Binance Labs has connected to Fiat24 as its default legal currency protocol layer. Users of the Safepal wallet can create a Fiat24 on-chain bank account on Arbitrum through the in-DApp’s Web3 online banking portal to achieve :

1. U-based on-chain banking services, accounts are self-hosted, and all related transactions are recorded securely and transparently on the chain;

2. Deposits and withdrawals of crypto assets Crypto and fiat currency Fiat in the wallet;

3. Fiat transfers and remittances between bank accounts on the Fiat24 chain and physical bank accounts, fiat currency swaps of Euro/USD;

4. After accessing the virtual crypto payment Visa card, use crypto assets for seamless consumer payment in the real world.

（https://www.safepal.com/en/bank）

Veronica Wong, founder and CEO of Safepal, said: “After creating a Fiat24 on-chain bank account in SafePal’s wallet, users can exchange any cryptoassets in the wallet into USDC and deposit them into the Fiat24 on-chain bank account, and virtual encrypted payment Visa cards can also be used. It can be linked with third-party payments such as Paypal, Google Pay, Apple Pay, and Samsung Pay to enhance the convenience of user payment.”

2. Web3 banking protocol Fiat24

Fiat24 is a financial technology company licensed by the Swiss Financial Market Supervisory Authority (FINMA). It has launched the first Web3 banking protocol that fully structures banking logic on the public blockchain (Arbitrum) and is driven entirely by smart contracts. Create an on-chain bank account for users and provide a series of Web3 banking services such as deposits and withdrawals, encrypted consumption payments, savings, transfers, and exchanges.

（Temperature Check - [Issue a Visa Card with Uniswap Logo ]）

You can think of Fiat24 as the legal currency protocol layer (Additional Fiat Layer for DApps) of DApp/DeFi. At the legal currency protocol layer, Fiat24 creates an on-chain bank account (Cash Account) for users who pass KYC. On the one hand, this account can integrate Web3 payment services. For example, users can directly realize deposit and withdrawal payments and encrypted consumption payments through on-chain bank accounts; On the other hand, relying on the financial technology license, the bank account on the chain can be directly connected to the Swiss National Bank, the European Central Bank and the VISA payment network, and can realize traditional banking services such as legal currency savings, currency exchange, and merchant settlement.

Fiat24 moves the bank’s core operating logic (Core Banking System) to the chain, which is a perfect practice of Fintech’s blockchain innovation. It integrates the decentralized ledger technology of the blockchain to the greatest extent, enhancing convenience while also strengthening Improves security and avoids the risk of single point of failure.

What’s even more commendable is that this innovative approach has been recognized by Swiss regulation, which is based on the Technology Neutral regulatory principle and ensures that Fintech companies can carry out bold technological innovations while meeting basic business functions. As a result, Fiat24, on the one hand, realizes bank accounting through blockchain, and on the other hand, uses NFT to realize KYC of user identities on the chain to meet anti-money laundering requirements.

Fiat24’s blockchain banking architecture seamlessly integrates traditional bank financial services and Web3 blockchain innovation, and has won the favor of many top capitals. It has also been awarded the 2022 Best Neobanks & Specialized Players by Qorusand Accenture. Honor.

（Qorusand Accenture Announce Winners of 2022 Banking Innovation Awards）

3. Bring innovative logic of legal currency business to DApp/DeFi

Fiat24’s previous innovation was to put bank logic on the chain, which was recognized by Swiss regulators. After this, Fiat24’s innovation lies in opening new legal currency business logic for DApp/DeFi.

Due to the restrictions of the Fintech license, Fiat24 is not able to carry out lending business and can only engage in deposit-taking and payment businesses. However, these limitations bring huge advantages to Fiat24 using Web3 banking architecture:

A. Global card issuance payment based on Debit Card. Credit Card is essentially a loan. Due to the Fiat24 license restrictions, it cannot expand its business, and there is huge pressure to collect defaults, so it is generally limited to fixed areas. The Debit Card for recharge payment can realize card issuance and payment on the global network, and there is no default problem.

For those who want to put crypto assets into daily use, Fiat24’s revolutionary ability to provide deposit, withdrawal and crypto payment solutions for DApp/DeFi is an innovation in the traditional payment system.

B. Seamlessly graft DApp/DeFi. Due to license restrictions, it is impossible to carry out lending business, but this does not prevent the Fiat24 banking protocol itself (Fiat Layer Protocol) from being directly and freely grafted on DApp/DeFi, and realizing the lending business on the chain through DeFi smart contracts.

The key point here is that as a protocol, it can bring the business logic of legal currency to DeFi. Take the most common financial activities as an example:

1. Collateral lending: Bob provides the crypto asset ETH as collateral to borrow stablecoins on the DeFi platform. The DeFi protocol can directly call the Fiat24 banking protocol to lend USD legal currency;

2. Investment/Pledge to earn interest: Alice provides the encrypted asset ETH for pledging to earn interest. The DeFi protocol can directly call the Fiat24 banking protocol to issue legal currency interest-bearing assets. Can this really win?

3. Investment and financial management: Will provides the encrypted asset ETH to directly invest in the tokenized security Coinbase of the DeFi protocol. Then the DeFi protocol can directly call the Fiat24 banking protocol and use legal currency to buy stocks on Nasdaq.

（X@Fiat24）

There is a lot of room for imagination in adding the logic of legal currency to DeFi! Similarly, as the protocol itself (Fiat Layer Protocol), the ability to be directly and freely grafted onto DApp/DeFi can also help Fiat24 smoothly connect to the Blockchain Network and bring huge ecological value.

Just imagine, if the centralized Metamask wallet is connected to the centralized deposit and withdrawal Moonpay, how many contracts need to be signed, how many departmental discussions are needed, and how many leadership signatures are needed? Imagine again, how does the centralized deposit and withdrawal Moonpay sign a contract with the decentralized DeFi protocol? The DeFi protocol has no legal entity and no official seal at all.

There is no obstacle or friction between Fiat24 Banking Protocol and DeFi Protocol, just by one Click!

Everyone is not legally bound, but makes Lego games together through smart contracts. This is the essence of Web3.

4. Write at the end

Now there are two waves of people doing Web3 Banking/Payment business. One wave is the traditional cross-border payment people. They still follow the traditional cross-border payment idea. Crypto just has one more currency. They use channel fees, membership Making money from subscription fees is a cash flow business; the other wave is the Web3 Native people, who don’t think much about cash flow business, but will directly use blockchain to transform the old system and release new ones. Vitality, and to embrace the community ecology, do some Blockchain Network things, and do ecological business.

We don’t know who will have the last laugh, but I am willing to believe, participate, and create the transformative power of Blockchain Network!

Disclaimer：

1. This article is reprinted from [panews]. Forward the Original Title‘解读Web3银行协议Fiat24：DeFi乐高游戏新玩法，进一步打通与现实世界的交互’.All copyrights belong to the original author [Web3 Xiaolu]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
3. Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited.