The banking industry is changing and Blockbank is riding the wave to the new generation. Recognizing that the paradigms of banking are melting away, co-founders Adam Cuffe and Yusuf Sozistrive forward in modernizing banking solutions with blockchain’s wind under their wings.

While the rush to jump on the ICO bandwagon has gripped many new start-ups, Blockbank have taken the time to ensure that every step of their own journey has been fruitful in providing a more solid foundation for business — that will support the future of commercial banking. While a wealth of ‘banking’ start-ups revel in the panegyrics attributed to them in crypto space media, many of these bolting blooms wilt following their token generation events, as their banking licenses are unapproved.

Their conceptual businesses appear to blossom on the basis of peer-to-peer lending schemes and buckets of optimism, yet there has never been a fully licensed bank on blockchain — until now.

The first fully licensed bank on blockchain, Blockbank is leveraging cutting-edge technology to pioneer commercial banking solutions to close the global funding gap.

What is Blockbank?

Blockbank, as stated above, is the first fully licensed cryptobank. Despite the phrase ‘cryptobank’ being coined by other companies, there has been no real bank on the blockchain until this point.

Blockbank is offering commercial loans on a global scale by using blockchain technology and their own ERC20 coin. By paying loan fees in BBRT — Blockbank’s token — commercial entities can now apply for funding from anywhere in the world without excessive third-party payment gateway fees, high-cost currency exchange fees, and jurisdictional blocks.

Aside from the cross-border transactional capabilities of the software, thanks to their approved banking license, Blockbank are legally able to provide commercial lending products to customers worldwide — closing the funding gap legitimately.

What’s more, because Blockbank is grounded in blockchain technology, all customers enjoy the benefits of this reflected in their commercial financial products. For example, as there is no need for a middleman, savings in transactions fees are directly related to savings in interest rates. In this respect,

Moreover, their deployment of smart contracts to automatically manage and execute funding also cuts back on costs and time. This means that funding is available more quickly, while also attributing to the lower interest fees.

Additionally, while current banks and financial institutions are constantly gracing the media with yet another hack or malicious attack, blockchain technology provides extra security to protect Blockbank customers. Not only does the immutability of a decentralized ledger provide crystal-clear transparency in operations, the high levels of encryption and the very quiddity of a decentralized system provides exceptionally superior security to conventional banks.

In short, thanks to their innovative use of this trailblazing technology and their full banking license, Blockbank are able to leverage blockchain to provide affordable, secure, asset-backed, commercial FIAT loans, accessible across a global network.

What About Other Cryptobanks?

The term ‘Cryptobank’ has already been floating around the blockchain space, with companies shoving it into their taglines to coin the phrase to reflect any fintech institution vaguely representing a bank.

However, to be a bank, a company must have a banking license. Companies without banking licenses are third-party financial institutions, restricted to certain activities. While it may walk like a bank and talk like a bank, the lack of licenses means it isn’t really a bank.

As the term ‘Cryptobank’ isn’t restricted to such pernickety specific definitions as the word ‘Bank’, blockchain and crypto companies use the term to imply their trustworthiness, expertise, and power by including the suffix ‘bank’. For potential customers, it gives these entities more credibility.

While most often this isn’t to deceive people into losing money, it is important to be aware that existing ‘Cryptobanks’ do not hold these licenses in the way that Blockbank does.

Let’s take a look at some of the existing enterprises in the blockchain space that are referring to themselves as ‘Cryptobanks’ or are offering similar banking services to conventional banks.

Cryptobank.co

Cryptobank.co isn’t a bank whatsoever. It can be considered more of a currency exchange than anything else — or perhaps a trading platform. Cryptobank sets out to help provide stablecoins. These are cryptocurrencies pegged to the same value as regular FIAT currency.

In this sense, Cryptobank isn’t a cryptobank at all, but instead allows its users to gain cryptocurrencies using their FIAT currencies, without worrying about the volatile crypto rates of coins like Bitcoin.

European Cryptobank

European Cryptobank appears to be a wallet for cryptocurrency combined with a trading platform and a series of financial analysis services. As European Cryptobank doesn’t have a banking license, they can’t provide bank services in the same way in which Blockbank are able. While Blockbank can offer commercial loans, European Cryptobank serves only as a storage for cryptocurrency.

Nebeus

Nebeus provides peer-to-peer loans, which is a new phenomenon using the concept of the sharing society. P2P loans operate a little like crowdfunding and allow global microloans between customers. Nebeus also don’t have a banking license and are not able to offer commercial loans. Businesses looking for affordable commercial products won’t find them at Nebeus.

Cryptov8 and World Bit Bank

Cryptov8 and World Bit Bank are very similar concepts. They are looking to become proper cryptobanks offering personal loans, and are currently seeking licenses. However, both are currently in their ICO phases without having already attained an approved license. With respect to token investors, if these two companies are unable to gain banking licenses, they will be unable to offer their services — leading to a drop in token value.

Not only does Blockbank offer commercial rather than personal loans, it also differs in the fact that Blockbank already has a banking license. Blockbank made certain to acquire their banking license approval beforeentering the crypto space with an ICO.

Equally, both these companies only offer loans in cryptocurrency, not in FIAT. Blockbank is offering affordable FIAT commercial loans. While assets can be in cryptocurrency, loans are paid in FIAT straight to the successful applicant’s bank account.

Unchained Capital

Unchained Capital are a familiar investment face in the crypto space. They offer both commercial and personal loans in FIAT cash but only in return for cryptocurrency assets. This company is not based on blockchain and wires cash in return for the cryptocurrency assets. Unchained Capital does not have a banking license and cannot provide the financial services that Blockbank are legally, technologically, and professionally able to tender.

What Are the Benefits of a Banking License?

If these companies are able to pose as banks behind the loose definition of ‘cryptobank’, why bother getting a banking license at all? Surely these companies show that there is no need for a banking license whatsoever if they’re storming ahead.

It’s confusing but actually these blockchain start-ups limit themselves by not having banking licenses. By being the first fully licensed bank on blockchain, Blockbank are able to leap over these competitors into a next generation of banking, without the restrictions of legality or consumer scepticism.

Legality

Firstly, banking licenses are awarded to companies meeting the legal standards of banking entities. When an enterprise is dealing with your funds, ensuring they are in compliance with all regulations and standards demonstrates their stringency in observing rules and codes of conducts.

For companies that flout this, jumping through loopholes to appear as banks without the proper licensing, they are limited to only carry out certain services.

Imagine relishing the thought of a cold pint after a hard day of work, walking into a building labelled ‘Pub’, only to realise they couldn’t service beer as they have no alcohol license. That’s what these other ‘cryptobanks’ are doing. While not illegal, their lack of license restricts the activities in which they can be involved.

However, if those companies overstep the mark, crossing over into ‘banking practices’ territory, they transgress their legal boundaries. This can result in repercussions that affect the share prices of the company or in the case of crypto enterprises, usually the value of their tokens.

With Blockbank, by acquiring full licensing before their ICO, they aren’t putting themselves in the position of legal turmoil at a later date, and are able to conduct their activities without pressure of rebuttal. For token holders, this means that Blockbank’s BBRT is far less likely to drop in value at a later date.

Trust

Hacks and data breaches are becoming commonplace in traditional banking. This is one of the main reasons that it is no surprise that blockchain technology is infiltrating the industry at such a rapid rate. However, while conventional banks have been publicly garrulous about their potential integration of blockchain technology, their current systems remain the same leading to security breaches. These persistent security issues leave customers worried about their financial futures.

This could give the impression that the average person is frenetically combing through alternative options for personal and commercial banking. Sadly, this is not the case.

While many blockchain evangelists expect the general public to sheepishly gallop into the open arms of cryptobanking, most everyday people are unsure about the unknown. A puckishly complex concept, blockchain technology is often far too confusing for busy working people to willing delve into, and therefore leaves them rejecting the benefits of the technology — especially in areas such as banking.

Moreover, with the failures of many blockchain start-ups and a lack of legitimacy in many others, those who initially had cryptocurrency excitement are also now a little wary. In this light, despite the security issues with conventional banks, the smattering of ‘cryptobanks’ that have currently popped up pose little serious competition.

While most people don’t understand blockchain, they understand what a banking license is — to a point. Why would one enter into a loan agreement with a company that calls itself a bank without a banking license? Even if they do claim to be ‘this new blockchain thing’?

Legally, these enterprises may be following all regulations. However, for the average customer, a company calling itself a bank without a license paints a picture of untrustworthiness. Moreover, the lack of a banking license questions their credibility, the legitimacy of their services, and their compliance with regulations.

For the average person looking for an affordable loan anywhere in the world, who has the nous to enter the blockchain space, Blockbank’s full banking license provides certificated trustworthiness, bolstering Blockbank’s legitimacy and credibility.

Extended Services

Not only does Blockbank’s banking license mean that they are able to offer low-cost commercial FIAT loans globally, it also means that they are a fully licensed commercial bank.

Currently only offering commercial loans, the future for Blockbank looks to be bright. With plans to expand their service range to become a more comprehensive one-stop-shop for commercial entities and governmentS, Blockbank aim to go public in a few years’ time.

Compounding this, Blockbank’s BBRT decentralized token economy opens the doors to their ERC20 token becoming a global payment mechanism. This helps commercial entities smooth the logistics of their supply chains utilizing Blockbank’s funding — while also thickening their revenue streams by accepting the currency and generating loyalty.

By combining the token economy with their plans for extended commercial banking services, Blockbank aims to pave the way to a more bespoke yet automated banking experience, with hassle-free affordable funding services, and financial expertise to support every project.

BBRT tokens are now available on the LATOKENexchange

Blockbank’s Platforms

https://bbcl.io/

https://theblock-bank.com

https://www.theblockbankexchange.com