Coinbase Challenger Aims to Link Bank Accounts for Instant Bitcoin Purchases
Fintech startup Zap Solutions is reportedly positioning its new crypto app to rival industry giants Coinbase, the largest cryptocurrency exchange in the US, and BitPay, the largest payments processor for crypto. Its new tool, dubbed “Olympus”, is designed to allow users to link up a bank account and instantly purchase Bitcoin via the Lightning Network.
According to Zap Solutions founder Jack Mallers, the company’s new product is super fast and easy enough for crypto newbies.
“Someone who has never experienced Bitcoin before should be able to swipe their debit card, get Bitcoin delivered to them directly onto the Lightning Network, and make inexpensive instant micropayments within seconds of purchase.”
The Lightning Network, a scaling solution that’s designed to make Bitcoin and crypto go mainstream by settling transactions instantly, appears to be one critical key to Olympus. The other is to streamline the know-your-customer process (KYC) that can make acquiring BTC and other cryptocurrencies cumbersome and slow.
Addressing the on-demand, smartphone crowd, the Lightning-enabled fiat-on and off-ramp service is built to be snappy and streamlined without any friction or fuss.
Mallers lays out the chops required to pull it off.
“Accomplishing this takes a lot of effort and expertise in a wide range of skill sets. Legal expertise and the ability to educate lawyers and regulators is required. Market and trading expertise that enables near-instant settlement, tight quote streaming to consumers buying small amounts, and smart order routing to ensure fair pricing and best execution, is required. Fast yet pinpoint accurate automated risk management is required. Experience with building on bitcoin and Lightning is required. The ability to cleverly use the protocols to execute the vision is required. And lastly, the product chops to design and implement something new that not only works but works at scale is required.”
Prior to the app’s scheduled launch date in 2020, Zap will have to acquire money transmitter licenses in each state. The company plans to make Olympus available on all Zap wallets: iOS, Android, Mac, Windows and Linux.
Mallers is working with Chicago-based CMT Digital, a crypto investment company that has made investments in several high-profile initiatives and crypto-related companies including Bakkt, ErisX, Abra, Circle, BlockFi and Silvergate Bank.
Says CMT Digital,
“We are thrilled to be working with Jack Mallers to build out the next generation of bitcoin scalability and usability!”
As for waiting for Coinbase and BitPay to implement the Lightning Network for fast transactions, Mallers is clear.
“No. Fuck that.”