London-based startup Greengage, formerly DAG Global, is applying for a UK banking license in order to become the “first digital assets merchant bank” in the UK.
Following “constructive dialog” with regulators, the fintech firm, which specializes in digital assets, is now resubmitting an application originally filed in 2019. If approved, the company would be able to serve crypto firms with merchant banking solutions, effectively bridging the divide between digital asset services and traditional banks, according to a report by the Financial Times.
As the digital economy expands along with the rise of Bitcoin, stablecoins and other digital assets that are leveraging speed, low-cost value transfers and the ability to trade 24/7 across borders, new tech-driven businesses integrating token economics are looking for hybrid platforms that can facilitate transactions between digital systems and the legacy structure.
Ideal banking partners would remove concerns about having accounts shut down or otherwise limited due to restrictions placed on “high risk” transactions involving cryptocurrencies – eliminating scenarios that have stifled innovation in countries such as India where the Reserve Bank of India issued a mandate in 2018 that prohibited banks from servicing crypto-related businesses.
Greengage confirms on its website that a full UK banking license would allow it to offer blockchain and crypto entrepreneurs a full suite of services, including digital assets lending and over-the-counter trading, removing the gap between fiat currencies and digital assets.
“Our robust, industry-leading digital banking platform is being built using advanced and robust technologies, which enables us to facilitate cost-effective transactions within and across traditional fiat currency and digital assets – all to the highest globally-established standards of compliance and security.”
The firm joins a number of companies that are exploring how to offer services for both crypto and fiat currencies under one roof.
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