June 5, 2024

Swiss Fintech Fiat24 Transforms Banking with Web3

Swiss fintech company Fiat24 is pioneering a new era in banking by leveraging Web3 technology. Utilizing ERC-721 to represent clients’ on-chain IDs and ERC-20 for deposits, Fiat24 is redefining traditional banking processes with blockchain innovation.

NFTs in Banking

In the Web3 era, Fiat24 uses NFTs to manage client identities and deposits. Unlike their initial market hype as digital collectibles, NFTs now play a crucial role in secure and transparent banking.

Moreover, Fiat24’s NFTs not only serve as digital identities but also provide legal proof of ownership and act as access keys to accounts. Clients can log in using their NFTs, which also contain the logic for performing banking activities.

Opening a Swiss IBAN account with Fiat24 ties the last few digits of the account to the NFT number. Client balances are represented with ERC-20 tokens, and smart contracts handle all operational logic.

This system allows clients to manage their banking via non-custodial wallets like MetaMask, converting digital assets into fiat currency seamlessly.

Advantages of Fiat24’s Web3 Integration

Fiat24’s integration with traditional payment networks like SWIFT, SEPA, Visa, and Mastercard is enhanced by ERC-20 tokens. As a result, it improves transaction efficiency and accuracy.

Working of Fiat24. Source: Fiat24 

The programmability of ERC-20 tokens facilitates automated financial processes like conditional payments and lending, reducing the need for intermediaries and central authorities.

Furthermore, this decentralization speeds up transactions and cuts costs, making ERC-20 tokens ideal for cross-border and peer-to-peer transactions.

By combining NFTs for identity verification and ERC-20 for transactions, Fiat24 replicates all traditional banking functions on the blockchain. The project, built on Ethereum layer 2 Arbitrum, has received support from the Arbitrum DAO, which granted Fiat24 ARB tokens and facilitated the launch of the first Arbinaut-designed Visa debit card.

Fiat24’s innovative approach marks a significant shift towards decentralized, efficient, and secure financial systems, paving the way for the future of banking.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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