Markets

Capturing Crypto’s Product-Market Fit in Cross-border Payments

Published

11 months ago

4 June, 2024

Capturing Crypto’s Product-Market Fit in Cross-border Payments

In a landscape defined by an unprecedented landscape scanning and global connectivity, cross-border payments remain a paradox.

This is because, despite the size of the total addressable market — which is expected to reach an astonishing 290 billion by 2030 — cross-border payments are rife with inefficiencies, high fees, and delayed transactions. A situation almost entirely due to the ongoing limitations of traditional methods and legacy infrastructure.

However, getting cross-border payments right is increasingly critical for companies looking to expand internationally and capture growth in new markets. That’s why companies are starting to adopt alternative cross-border money movement vehicles, including blockchain-based solutions that offer streamlined cross-border flows while freeing up capital previously tied up in correspondent accounts in multiple countries.

After all, as long as companies are being charged foreign exchange (FX) fees, transaction and correspondent banking fees, compliance fees and remittance fees, tariffs and taxes, all while their money moves at a snail’s pace, there is a attractive opportunity to reduce payment costs while providing a better user experience.

And with the news that State Streetthe largest custodian bank in the world, is rebuilding its digital asset team just half a year later dismissing staffoptimism around crypto product-market fit in the cross-border context it is becoming more difficult for companies looking for an operational advantage to amortize.

Eliminating friction from cross-border B2B payments

Cross-border payments inherently have more points of failure compared to their national counterparts, something particularly true for B2B payments. Compliance is a ever-present questionwith local Anti-Money Laundering (AML), Know Your Customer (KYC) policies and sanctions checks that need to be addressed for each individual region – and there are over 19,000 tax jurisdictions worldwide.

According to recent research from PYMNTS Intelligence, the failure rate for cross-border payments approaches 11%, representing US$3.8 billion in lost sales in 2023 alone.

Delays and the threat of fraud also create bottlenecks, while foreign exchange (FX) rates and a long list of fees raise their own hurdles. According to separate research from PYMNTS Intelligence, nearly half of Citibank corporate customers see high cost as one of the main problems when making international payments, and 59% say the same about slow speed.

“This central problem is how long does it take to move money across borders… you are being charged high fees to move money across borders and you also cannot track these payments and know that they have arrived for sure,” Brooks EntwistleSenior Vice President of Global Customer Success and Managing Director of Crypto Enterprise Solutions Company Curling, said PYMNTS. “As these companies grow, there is a need to actually move value faster and in more places.”

In this context, blockchain-based cross-border solutions, particularly stablecoins, are increasingly being adopted by companies looking to find a better way to transact and expand internationally.

O Solana processed network US$1.4 trillion in stable currency cross-border payments just last March – a testament technology scalability.

See too: Interoperability and transparency are key challenges as cross-border payments modernize

Assessing the future of international payments

As Jim ColassanoSenior Vice President of RTP Product Development at The Clearing House (TCH), told PYMNTS, “instant, cross-border payments are the sacred chalice of payments.”

And new PYMNTS Intelligence finds that when it comes to cross-border payments, blockchain solutions could offer advantages compared to traditional systems. That’s because blockchain’s high throughput, low fees, and 24-hour availability could eliminate much of the friction from international transactions, making each one as easy as sending a Venmo payment.

Despite the promise, the path to widespread adoption of cryptocurrencies for cross-border payments is not without obstacles. Regulatory frameworks around cryptocurrencies vary significantly between countries, creating uncertainty and potential legal challenges. Central banks and financial regulators are also concerned about the potential for cryptocurrencies to facilitate money laundering and other illicit activities.

But PYMNTS Intelligence finds there are some Best Practices for companies looking to leverage blockchain to complement their cross-border payment mechanisms.

This includes partnering with a FinTech capable of simplifying cross-border payment processing and facilitating seamless conversion from digital to fiat currency, ensuring a streamlined cross-border payments experience; incorporation of stablecoins into payment systems; implementing permissioned, business-friendly DeFi solutions that automate and secure B2B transactions through smart contracts; and, of course, educating business customers and banks about the benefits of blockchain-based B2B payments.

After all, frictions in the cross-border landscape can be addressed – but they don’t have to be inevitable.

See more at: B2B, B2B Payments, Blockchain, blockchain payments, commercial payments, conformity, cross-border payments, cryptography, Crypto Payments, cryptocurrency, digital transformation, faster payments, Global Payments, News, Payment methods, payment innovation, PYMNTS News, regulations

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We are the editorial team of FinCrypt, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on FinCrypt, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Markets

Crypto Markets Rebound as Spot Bitcoin ETFs Attract Massive Inflows

Published

9 months ago

17 July, 2024

FinCrypt Staff

Crypto Markets Rebound Ahead of Early Ethereum ETF Approval

This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.

Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).

The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.

Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.

Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.

Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.

Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.

Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.

U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.

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Markets

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Published

9 months ago

17 July, 2024

FinCrypt Staff

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.

Worldcoin (WLD) Price Analysis

O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.

The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.

Arweave (AR) Price Analysis

Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.

AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.

Price Analysis of Injective (INJ)

Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.

INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.

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Markets

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Published

9 months ago

17 July, 2024

FinCrypt Staff

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.

ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.

ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment

Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.

According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.

On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.

The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.

Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.

One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.

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Markets

Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt

Published

9 months ago

17 July, 2024

FinCrypt Staff

Bits + Bips: How to Play the ‘Trump Trade’ in Crypto After the Assassination Attempt

Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?

Posted on July 17, 2024 at 12:00 PM EST.

Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.

In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.

They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?

They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).

Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?

Program Highlights:

Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
What are the new updates about Ethereum ETFs and their expected launch?
Why Solana Hasn’t Performed Significantly Better Since Trump News
What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week