May 22, 2024
Eco Shifts Gears: Transitioning from Custodial to Self-Custody Crypto Solutions
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Eco Shifts Gears: Transitioning from Custodial to Self-Custody Crypto Solutions

Eco, a cryptocurrency-based financial wallet software, has announced a big turn. The company is shifting toward self-custody even if the Eco app is currently a custodial solution, which highlights its second product, the non-custodial Beam wallet.

“Building custodial crypto products just doesn’t make any sense,” Andy Bromberg, CEO of Eco and Beam, stated, so they are doubling down on the “truly crypto side of things.”

He stated that there are two causes.

The constant regulatory crackdown on custodial products in the US, where Eco is a consumer-focused product alone, “is brutal,” according to Bromberg. He cited a long list of examples of the U.S.’s anti-crypto stance, citing Coinbase’s lawsuit and Revolut’s decision to disable its crypto capabilities as just two.

Bromberg noted that “it has been a year” for custodial platforms, citing FTX’s demise, and that the current situation means they are “playing with ankle weights.”

He said that they have no intentions to provide custodial solutions for their customers going forward and that they will be gradually deprecating features as the year comes to a close.

The unexpected choice benefits the business’s Beam wallet, which debuted in late July.

Beam uses Web3 technology, despite having a Web2 look and feel. The wallet runs on top of layer-2 rollup Optimism and makes use of account abstraction, an Ethereum innovation that allows sending cryptocurrency as simple as sending emails.

Beam also utilizes Coinbase’s Base network, a business that, in Bromberg’s opinion, shares the vision for a real cryptocurrency future. According to the CEO of the company, 80,000 people purchased the product in the first two months, with strong organic growth coming from Indonesia, Nigeria, and Vietnam.

According to Bromberg, Beam’s technology heralds the arrival of the future.

Heavy-hitter investors like Andreessen Horowitz and Kevin Durant, who supported the choice, were astonished by it, according to Bromberg. He claimed that “as of this year we can build the original vision of crypto” and that “they are realizing the same opportunity we are.”

The CEO of Eco wants to be clear that his business was never meant to turn into a conventional fiat-based bank. His vision is of a world where decentralized currencies, such as the Eco money used by his business, are urging the rest of the sector to “wake up.”

“If the future is custodial, we failed,” he said in his conclusion.

Image: Unsplash

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