The recent developments in financial technology (FinTech) have resulted in the widespread acceptance of cryptocurrency payments. Enterprises that seek to set a foothold in global markets use decentralized assets to sell products globally. Those who do not have a team of experts to develop blockchain-based solutions can benefit from utilizing the crypto as a service (CaaS) model. It allows them to access the necessary infrastructure and leverage the distributed ledger technology without significant investments or a high expertise level.
Understanding Crypto as a Service
CaaS is a FinTech model that implies the provision of crypto-related solutions to businesses of all kinds. Companies that do not have large financial resources to build blockchain-powered products establish partnerships with providers who specialize in a specific technology.
Using CaaS enables organizations to access top-grade cryptocurrency services at an affordable price. Leveraging this model, firms provide clients with secure access to digital assets.
The difference between CaaS and the blockchain as a service (BaaS) model lies in the fact that the former is utilized by enterprises that intend to conduct direct transfers and use digital wallets. BaaS refers to the offerings related to blockchain technology development, mining, and investing.
Hosted in the cloud, CaaS systems are accessible from anywhere, eliminating the need to build an infrastructure from scratch and invest in its continuing maintenance.
The usage of CaaS has become more widespread with the increasing popularity of DeFi solutions. They enable ventures to accept cryptocurrency as a payment method on web-based platforms.
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Types of CaaS
Besides allowing firms to provide their clients with stable access to wallets, crypto as a service companies develop other solutions, enabling customers to exchange and store virtual assets safely. Below, we have outlined some other types of solutions a crypto business use to target a wider audience:
- Crypto trading platform: Using APIs, clients access popular marketplaces, enabling users to swap tokens.
- Secure payments: CaaS providers integrate eCommerce sites with mechanisms for accepting tokens, enabling them to establish a strong presence in foreign markets.
- Custody: Such tools let users store assets without any risks.
Besides, providers often integrate lending features, streamline yield farming, and build other products.
How Crypto as a Service Works
CaaS lets financial institutions establish new revenue sources by allowing clients to pay with virtual currencies. This model facilitates performing such tasks:
- Trading digital assets
- Making payments using coin vaults
- Storing cryptocurrencies
Providers utilize monitoring tools to track suspicious activities. They also build user interfaces in accordance with custom requirements. Through these UIs, anyone can make crypto payments and manage assets.
Benefits of CaaS
Businesses that want to achieve sustainable development leverage innovations to make their offerings more enticing. Let’s consider the main reasons to utilize CaaS:
- Lower costs: Companies do not need to invest in the infrastructure.
- Top-level expertise: Trusted providers have teams of seasoned experts who can integrate crypto products with ease.
- Compliance: CaaS firms build exchange software and other solutions that meet regulatory requirements.
As this model becomes ubiquitous, organizations discover new reasons to deploy it to optimize routine processes.
Crypto as a Service Use Cases
CaaS can be used across many industries. Below, we have compiled a list of the most notable examples where this model enables companies to improve the quality of the offerings they provide:
- Financial organizations: Banks can leverage CaaS to offer a wide choice of options to investors interested in cryptocurrency. Launching platforms with convenient trading tools is easier than ever.
- Remittance organizations: They utilize CaaS to facilitate low-latency cross-border payment at a budget price.
- Gaming: Companies do not have to build custom solutions, as they deploy CaaS to accept deposits and incentivize players.
- Online retail: eCommerce site owners use CaaS to get paid with tokens.
In the future, the crypto as a service model is expected to become widely used, enabling enterprises to save money, access recent technologies, and enhance the quality of their offerings.
