According to a detailed analysis published by Deribit, a leading cryptocurrency exchange, crypto firms are racing ahead to adopt some features from traditional banking services— interest accounts, cost-effective transactions, and tax services. The post maintains that big crypto exchanges would offer all of these features regularly in less than two years.
The Race Has Already Begun
The analysis observes that a large number of crypto exchanges are already ahead with including these features into their business. And what is more, these companies are giving them a market differentiation twist that makes them better than what traditional banks have to offer.
For instance, the leading crypto firm, Celsius, is offering its customers outside the United States and Japan as much as 8.1% APR on Bitcoin deposits at its peak loyalty levels. A number of traditional financial institutions also offer savings account and loyalty services. However, they do not generally provide such high rates as offered by Celsius.
Additionally, the crypto firms are also planning to bring about cuts in exchange fees along with other changes in order to drive user adoption. Traditional banks have been criticized for higher transaction fees. With crypto companies introducing zero-fee trading, the overall revenue generated by them would still stay unaffected while benefiting users greatly.
The post concluded with the assertion that in a few years the competition existing between crypto exchanges, wallets, and custodians will shift from the kind of expansion that involves more and more assets to the one which results in allowing the users to do more with existing assets. The analysis said that though coming from different directions, these exchanges share a similar goal which is that of becoming a crypto bank. This would result in making financial services cheaper and more accessible.