Aussie cryptocurrency-backed loans provider Vield has underlined its goal of becoming the first “crypto-native bank” in the Asia-Pacific.
Vield – which has provided $30 million in cryptocurrency loans in 1H2024 alone – has unveiled its plans to launch Australia’s first cryptocurrency-backed debit card, in partnership with web3 payment platform Immersve.
The launch of the debit card, the company said, coupled with its lending milestone, are critical steps towards Vield’s objective.
This comes as cryptocurrency users continue to face “myriad” challenges, including safety and security concerns, a high knowledge barrier and poor user experience due to lack of financial infrastructure.
Chief executive Johnny Phan underscored the lack of services that are able to address the needs of cryptocurrency holders today.
“However, just as traditional banks serve the everyday financial needs of fiat currency users, Vield is aiming to become the go-to platform for crypto users – providing comprehensive solutions for spending and borrowing their digital assets,” Phan said.
“As the adoption of crypto continues to grow, our service fills a long-overdue gap in the market.”
According to the loan provider, it will also be offering the world’s first hybrid cryptocurrency mortgage, in addition to the world’s first dual asset loan using a combination of cryptocurrency and property as collateral to provide greater borrowing capacity.
Moreover, it aims to provide Australia’s first non-custodial prepaid card via Mastercard’s payment network, alongside Australia’s first cryptocurrency rewards platform.
“Vield now aims to be the single major non-banking source for the crypto economy, like the big four are for fiat currency,” Vield said in a statement.
This comes as bitcoin, the coin at the helm of the cryptocurrency movement, surpassed US$100,000 late last year, and has continued to benefit from institutional uptake.
But in conversation with InvestorDaily last year, AMP’s Shane Oliver said it’s difficult to imagine many use cases for cryptocurrency, beyond a store of value, in Australia.
“I don’t think it’s ever going to become a transaction currency, so it gets stuck in this store of value space as an alternative to gold in particular,” Oliver said.
“I can’t see Australians using bitcoin to transact at shops, there’s no need for Australians to do that. There are other means, and we’re seeing increasing competition.
“Therefore why would you bother putting your money in bitcoin, which is a lot slower, and there’s more issues around it, when you can just do a direct debit transaction in the bank for no more than it would cost to undertake a cash transaction.”
Jerome Faury, co-founder and CEO of Immersve, expressed a similar sentiment that while it may be easy to buy cryptocurrency, it’s difficult to spend it; however, companies like Immersve and Vield are looking to fill that gap.
“This is not a situation that crypto holders should just accept, and users have unsurprisingly grown tired of having to sell or convert their asset just to access its value,” Faury said.
“Our technology bridges the payment experience between the fiat and the crypto economies, granting all people the simple freedom of choice.”
