Providing established banks with effective, secure, and reliable access to bitcoin and other alternative digital assets
Crypto and alternative digital assets are lighting up the financial sector. As a scarce asset, bitcoin is becoming more attractive as a means of wealth preservation, regulators appear to be increasingly crypto-friendly, and the digital asset space is maturing to better serve institutions.
Over the past several months, bitcoin has soared as more and more institutions have identified the asset as a possible hedge against inflation. As the monetary supply has increased, we’ve seen more corporations choose to allocate a portion of their treasury to bitcoin, citing the asset as a stronger store of value than US dollars.
Recent regulatory guidance provides greater certainty around financial institutions’ ability to deal with crypto assets. Just last month, financial institutions were given the green light to engage with blockchain technology, custody cryptocurrencies, and accept stablecoins as a payment method by a division of the US Treasury, the Office of the Comptroller of the Currency (OCC). We recently published an explanation of the benefits of stablecoins.
The maturity of technology, market structure, and increased liquidity have made crypto a more predictable asset to deal with. Digital ledger technology, or blockchain, is continuously developing to improve security and scalability; the Bitcoin and Ethereum blockchains have seen notable updates recently. This digital asset infrastructure creates exciting new opportunities for growth within the financial services industry. As such, it’s no surprise that we’ve seen crypto and alternative digital assets rise in mainstream popularity.
This wave of demand is forcing established financial institutions to find new ways to provide access to these digital markets. But with regulatory complexity, security risks, technological requirements, and liquidity issues, expanding your financial services offering can be daunting.
Prime Trust is an established bridge between the banking sector and emerging alternative asset markets like cryptocurrencies. Our all-in-one alternative financial infrastructure supports quick deployment and de-risked access to crypto assets.
Providing access to digital assets with Prime Trust
Prime Trust makes it easy and secure to engage with crypto and alternative digital assets with Prime Core, our all-in-one API platform for quick, reliable deployment. Made up of six modules, the Prime Core ecosystem means you have the flexibility to dip a toe in the water or dive right in.
Below, we’ve outlined the ways in which our API works to support a variety of use cases.
Use Case 1: Financial institutions seeking secure sub-custody for accounting of assets
You have the resources to build your infrastructure in-house, but the risk of custodying digital currencies is just too great. You need a partner with expertise and experience in crypto assets to sub-custody, which will hedge your risk.
Enter Prime Custody. Prime Custody provides an API-based sub-custody solution to financial institutions who may not be able to or may not want to develop their own proprietary digital asset custody. With our API platform base we can support varying types of integration depending on the primary custodian’s infrastructure and needs. Prime Custody holds a variety of different assets from USD and other fiat currencies, to BTC and other digital assets, to real estate, and public and private securities. These assets can be custodied in a variety of account types.
Use Case 2: Crypto platforms seeking to offer trading services
You know digital assets and crypto is the future, but you don’t have the bandwidth or budget to build the infrastructure needed to offer it. You need an all-in-one, regulated infrastructure partner that will provide the necessary components of a cryptocurrency exchange.
Enter PrimeCore. PrimeCore offers a building blocks approach, making it simple and fast to pull point solutions together from our all-in-one API platform. PrimeCore’s APIs accelerate engineering integrations for AML/KYC, new account types, and use of credit and debit cards. Quickly deploy payment rails, custody, compliance, liquidity, and settlement, allowing customers to safely and confidently buy and sell assets.
Use Case 3: Digital wallets that want to make it easy for their customers to buy crypto
You provide a digital wallet that improves the user’s experience with crypto, allowing them to buy it easily and smoothly. Your wallet provides direct purchase of crypto assets, and you need an onramp that doesn’t require developer support.
Enter Prime Trust’s CoinRamp widget, your light switch to buying crypto. CoinRamp is a customizable plug-and-play widget that enables customers to convert fiat to bitcoin and other crypto assets. Transaction flows are frictionless and there is no chargeback risk on purchase transactions.
Interested in giving your customers access to digital assets?
Get in touch with us to launch digital assets now.