The world's first 'crypto bank' is on its way.
“Crypto is going to disrupt the traditional financial system.”
Ten years ago, almost no one would have understood that sentence.
Five years ago, most people would have laughed and suggested you switch from spirits to water, for at least a few hours.
Now it's starting to look like there’s some real truth to the statement.
And Abra wants to be the vehicle for that disruption.
This week, they announced that they were looking to launch the US crypto industry’s first regulated bank.
If successful, Abra Bank would allow customers in the U.S. to deposit and bank digital assets, as well as fiat, all in the same account.
Here’s what's interesting about this play:
Regulation
There’s a lot of red tape to cut through when setting up a bank.
Chances are, some services Abra is looking to offer will either live in a legal ‘gray’ area, or force regulation to be created around it (which is often a good thing).
Onboarding
In order for a bank to be successful, there has to be no friction in the onboarding process.
Abra is already a huge company with deep pockets. We can’t wait to see what innovation they bring in letting customers set up wallets/accounts with ease.
Marketing
Language is a barrier to getting into Web3.
“In order to bank with us, you need to set up a hot wallet” just won’t cut it. We’re looking forward to the language they use to attract customers.
At an industry level, if things go well for Abra Bank, it could pave the way for other financial institutions. Other new ones will pop up, and existing ones will adapt.
The downside is: if it goes badly, it could slow the industry's transition.
We’re rooting for you Abra! (Please don't screw this up).
