Crypto exchanges are gradually adopting financial services like what banks do and their services will include offering interest accounts, cost-effective ways to perform transactions and tax services that will change the look of crypto exchanges.
Very soon to adopt completely
A number of companies are taking up the features what traditional financial institutions offer and these companies are making these features more appealing to their customers in ways that banks cannot. For example, Celsius has recently started offering users outside of the US and Japan up to 8.1% APR on bitcoin deposits at its highest loyalty level to increase investor returns with higher investor returns with higher interest rate that are paid out in Celsius’s CEL token. On the other hand, banks provide lower interest rates than what Celsius will provide. Celsius is expected to offering compounding interest on crypto deposits as like as traditional banks.
BlockFi, the cryptocurrency lending service backed by Galaxy Digital, has recently announced that users can earn compounding interest on and trade loans backed by assets. Reportedly, higher interest rates are already driving adoption and a great potential of crypto-lending companies are waiting. Crypto-lending platforms typically offer collateral backed loans and interest provided by crypto-lending platforms is higher than traditional banks.
Being devoid of fees
As it is known that traditional banks hit users with costly fees but crypto companies are free of exchange fees. For example, Uphold, digital money platform, recently introduced zero-commission trading on 30 currencies. The CEO of Uphold thinks removing fees will ensure affordable access to cryptocurrency for millions of retail investors. But crypto companies will likely be earning smaller amounts of revenue. These steps are expected to stimulate adoption of cryptocurrencies but there is yet skepticism. But reportedly, existing cryptocurrencies have failed to achieve the objectives envisioned by their pioneers and are in general not considered as money.