{"id":653937,"date":"2024-11-19T17:10:12","date_gmt":"2024-11-19T17:10:12","guid":{"rendered":"https:\/\/uniquehot.com\/?p=653937"},"modified":"2024-11-19T17:10:12","modified_gmt":"2024-11-19T17:10:12","slug":"bitcoin-atm-firm-coinme-diversifies-into-b2b-crypto-services","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/company\/bitcoin-atm-firm-coinme-diversifies-into-b2b-crypto-services\/","title":{"rendered":"Bitcoin ATM Firm Coinme Diversifies Into B2B Crypto Services"},"content":{"rendered":"
The crypto-as-a-service (CaaS) market is projected to reach <\/span>$84.6 billion <\/span><\/a>by 2031, growing at a compound annual growth rate of 59.3%. This growth reflects the increasing demand for blockchain solutions across various industries, as traditional finance continues to embrace the upside of crypto-enabled services.<\/span><\/p>\n Coinme, primarily known for its bitcoin ATMs, is working to position itself as a key player in the emerging <\/span>crypto-as-a-service sector<\/span><\/a>.<\/span><\/p>\n The company’s CEO, Neil Bergquist, explains this new direction: “We’re a platform that provides crypto infrastructure. That infrastructure is the ability to create an account and conduct KYC [know your customer],” he says. “This is so Coinme and our partners can be in compliance with various state and federal regulations, but also so customers are able to use a debit card or cash to buy or sell digital currencies, and so we can custody digital currencies and send crypto to a customer’s wallet of their choice.”<\/span><\/p>\n This pivot allows Coinme to leverage its existing infrastructure and regulatory compliance to help other businesses integrate cryptocurrency offerings into their platforms.<\/span><\/p>\n “There’s various use cases and opportunities, and we see ourselves as just having all the ingredients to let the partner make whatever amazing dish they want to create for their customer,” says Bergquist.<\/span><\/p>\n Coinme’s services apply to several use cases, including the ability to interact with various blockchains, allowing for greater flexibility and interoperability.<\/span><\/p>\n Bergquist notes, \u201cIf you have a token and you want someone to be able to buy it, you’re going to need to offer a fiat payment processing to be able to purchase that token, and that’s where Coinme comes in.\u201d<\/span><\/p>\n Converting cryptocurrencies back to traditional currencies is equally important. Bergquist explains, “Coinme is able to provide that piece of infrastructure … if you’re earning a token reward, how do you redeem it?”<\/span><\/p>\n Securing storage of digital assets<\/span><\/a> is the third crucial step. \u201cIf you have a token, how do you allow people to hold it? And so that’s a custody solution where we can enable the partner to put their name on it,\u201d says Bergquist. \u201cCoinme provides the backend technology to custody that digital asset in a secure manner.\u201d\u00a0<\/span><\/p>\n The global CaaS market\u2019s growth is driven by factors such as increasing crypto literacy and adoption, aligning with blockchain technology\u2019s potential to combat the increasing number of cyber threats and accommodate growing complexity of the global financial sector. The banking, financial services, and insurance segment currently dominates the market share of blockchain-as-a-service (BaaS) sector, reflecting traditional finance\u2019s interest in the technology.Geographically, North America leads the BaaS market, with a high concentration of blockchain solution providers. However, Asia-Pacific is poised for significant growth, fueled by rapid economic and technological transformation in the region.<\/span><\/p>\n Despite the promising expansion, challenges remain. Bergquist notes that many potential partners, especially larger corporations, are in a “wait-and-see mode from a federal regulation perspective.” He adds, “When you deal with companies that are worth more than a billion dollars and already have a good thing going, they’re less likely to take a potentially unnecessary risks.”<\/span><\/p>\n The initial development and implementation costs of blockchain services can also hinder market growth. However, the increasing adoption of blockchain technologies in the global economy offers significant opportunities for expansion.<\/span><\/p>\n The crypto-as-a-service model offers a promising solution for businesses looking to enter the cryptocurrency space <\/span>without building complex infrastructure<\/span><\/a> from scratch. Bergquist sees potential for this model across various industries, including gaming and loyalty programs.<\/span><\/p>\n While regulatory challenges persist, the demand for turnkey solutions like Coinme’s crypto-as-a-service offering is likely to increase, particularly among younger demographics.\u00a0<\/span><\/p>\n “There’s a lot of great data and research out there that shows how individuals, call it under the age of 40, are more excited to invest in crypto, and believe that crypto has more upside than stocks,\u201d says Bergquist.\u00a0<\/span><\/p>\n “Data like that makes banks really want to participate, but the regulation isn’t there and it’s not supportive,\u201d he continues. \u201cWe were talking to a lot of banks who wanted to offer digital currency services, to enable people to log into their online bank account and buy bitcoin for example, or custody the bitcoin online through their bank account.”<\/span><\/p>\n This situation has created an opportunity for companies like Coinme to connect traditional finance and the crypto world. Providing the necessary infrastructure and regulatory compliance could enable Coinme to help businesses offer crypto services without taking on the full regulatory burden themselves.<\/span><\/p>\n Bergquist also discusses various ways businesses can <\/span>incentivize crypto adoption<\/span><\/a>. “Offering discounts on merchandise if someone pays in crypto, because obviously the merchants not having to pay so much to Visa or Mastercard, they theoretically could or should offer a discount,” he suggests.<\/span><\/p>\nKey Components of Crypto-as-a-Service<\/b><\/h3>\n
Market Dynamics and Growth Potential<\/b><\/h3>\n
The Future of Crypto-as-a-Service<\/b><\/h3>\n