Fast forward to today, and things are (thankfully) a lot easier. This shift from complicated, clunky systems to streamlined, user-friendly experiences is driving the future of finance. Exchange platforms like Kriptomat have changed things. Instead of navigating a labyrinth of confusing processes, they’ve made crypto as easy to access as your online banking.

At this year’s edition of the UNCHAIN Festival, we got the chance to talk to Dejan Davidovic, the COO and co-founder of Kriptomat. He shed some light on what makes the Kriptomat different and how they see their trajectory in the market of the future.

Making Crypto Accessible for Everyone

When people think of crypto, they usually picture fancy setups and complex trading platforms – which, to be fair, can be the case. Even I stumbled into some complicated things that left me thinking I could put my money elsewhere. As a beginner, going into crypto can be a challenge. But that’s exactly the problem Kriptomat set out to solve. 

Our goal has always been to bring crypto and this new technology and new opportunities to regular retail customers.

Dejan Davidovic

The platform was designed to help everyday users who find traditional crypto exchanges too intimidating or complicated. Since its founding in 2018, Kriptomat has grown to serve over half a million customers, mostly from Central and Eastern Europe. But Dejan is quick to mention that this growth wasn’t the result of flashy marketing. 

It happened organically, step by step. We always try to put customers first because we are very well aware that without customers, there is no service, and there is no us.

Dejan Davidovic

Building Trust in a Trust-Lacking Industry

One of the biggest problems facing the crypto industry today is trust. Between scams, fraud, and a lack of understanding, it’s no wonder many people are still hesitant to invest their money. 

The only thing our industry actually lacks is trust. We have all these different great solutions, but retail doesn’t trust us because they don’t know us.

Dejan Davidovic

Kriptomat tackles this problem head-on by being fully licensed and regulated.

We are a licensed company out of Estonia, and we are also registered as a crypto asset service provider in Spain, France, Greece, Croatia, and Poland.

Dejan Davidovic

In the near future, Kriptomat expects to operate under the new MiCA (Markets in Crypto-Assets) regulations, bringing even more oversight and credibility to its operations.

The Rise of the Web3 Wallet

Kriptomat’s mission isn’t just about making crypto accessible. It’s also about adapting to what customers want. For instance, the company recently launched its Web3 wallet, a hosted decentralized wallet that lets users access more than 1,000 digital assets.

We still control the wallet keys, but the customers can access whatever other asset is within their Kriptomat account, which makes it really easy for them to skip complicated things.

Dejan Davidovic

However, he’s transparent about the fact that this isn’t a perfect solution: 

Self-custody is one of the main benefits of crypto, but it’s also the biggest threat.

Dejan Davidovic

Kriptomat’s approach is to balance ease of use with security, and they’re continuously evolving this service based on user feedback.

Focusing on Eastern Europe

While many crypto companies aim to scale globally as fast as possible, Kriptomat’s approach is more localized. 

 We want to make the transfer from Fiat to crypto as frictionless as possible.

We are looking into this hyper-localization as much as possible, and we will be doing this in most Eastern European countries.

Dejan Davidovic

For Kriptomat, this means offering services in local languages, supporting local currencies, and working with local banking partners.

Kriptomat’s focus on Central and Eastern Europe sets it apart from competitors, particularly in a region where financial literacy is lower and the barriers to investing are higher. 

People in Eastern Europe lack financial literacy. We will continue to build products that make crypto an interesting investment asset.

Dejan Davidovic

Looking ahead, Kriptomat wants to expand its offerings beyond just crypto. 

There is a possibility that we will be looking into potentially adding also traditional investment assets to our platform, like ETFs.

Dejan Davidovic

This is part of a broader goal to transform Kriptomat from a simple crypto exchange into a more comprehensive wealth management platform.

But at its core, the company’s mission remains the same: to make crypto accessible, safe, and easy to use for everyone, whether you’re a first-time investor or an experienced trader. 

Today’s milestone represents the impact that tokenization has had on the entire payments ecosystem since we introduced the technology 10 years ago. Tokens have changed the game – securing online payments and paving the way for more innovations – from tapping to pay on the phone to enabling a future where we have more control over our data in the age of AI.

Jack Forestell, Chief Product Officer at Visa

Visa’s tokenization replaces sensitive card information with a unique digital identifier, enhancing payment security. As of now, 29% of all Visa transactions use tokens, leading to a 28% reduction in fraud and a six-basis point increase in global payment approval rates. Over 8,000 issuers and 1.5 million merchants are enabled for tokenization, with daily transactions continuing to grow.

Over the last 10 years, Visa has invested in scaling its token infrastructure to power safer and more convenient digital commerce for consumers and merchants here in Europe, and in nearly every market across the world. As AI begins to create more personalized experiences online, we’re using our token expertise to give people more control over their payments data.

Mehret Habteab, Senior Vice President of Product and Solutions at Visa Europe

Visa is set to introduce data tokens to provide consumers with greater control over their data. These tokens will enable users to view, consent to, and revoke data sharing directly from their banking apps, powered by AI for seamless personalization and security.

The product steps into the market with various features designed to attract seasoned crypto traders. The platform offers an extensive selection of over 100 tokens, including major cryptocurrencies, which can be traded with exceptionally low fees—0% for makers and only 0.09% for takers. 

Integration within the Revolut Ecosystem

Revolut X can also integrate seamlessly with the existing Revolut ecosystem. Traders can easily switch between fiat and cryptocurrency without incurring additional fees, facilitating a fluid transfer of funds across different asset types. This feature simplifies the process for traders who operate with diverse portfolios.

However, the platform isn’t just about low fees and easy integration. It also offers advanced trading capabilities, including real-time trading data, analytics, and integration with TradingView charts. Revolut also ensures the safety of traders’ assets, with the majority of funds kept in cold storage and security measures in place to prevent account takeovers and ensure the integrity of transactions.

In addition to its trading features, Revolut wants to promote crypto literacy among its users. The platform encourages the use of its Learn module to help traders understand complex crypto concepts and trading strategies. This educational initiative is part of Revolut’s broader mission to provide all-in-one crypto services that cater to the needs of its diverse customer base.

The dashboard provides clear, accessible insights into stablecoin transactions across various blockchains, offering detailed information on active users, transaction volumes, and sizes among other metrics.

Simplifying Stablecoin Data

The Onchain Analytics Dashboard is aimed at becoming a pivotal resource for those interested in stablecoin metrics. It filters out the excess noise associated with raw blockchain data, providing a more digestible and straightforward view of the underlying trends and shifts within the stablecoin market. Cuy Sheffield, Head of Crypto at Visa, stated:

There’s a lot of noise around stablecoin data. We wanted to create a solution that makes this data more accessible and understandable.

Sheffield has already noted several significant trends using the dashboard. One key observation is the steady growth of monthly active stablecoin users, with current figures showing 27.5 million monthly users across all chains.

Despite the general transparency of blockchain transactions, the dashboard helps highlight the difference between total transfer volumes and bot-adjusted volumes, offering a clearer picture of human versus automated transaction activity.

Looking forward, Visa is open to feedback, inviting users to contribute ideas that could improve its functionality and usefulness. This proactive approach not only helps refine the tool but also encourages community engagement to ensure it meets the needs of a broad spectrum of users.

Stripe’s decision to reintroduce cryptocurrency payments—starting specifically with a stablecoin—reflects a strategic move to offer more stable and reliable transaction options in the crypto space. 

Stablecoins like USDC are pegged to stable assets such as the US dollar, which reduces the volatility typically associated with cryptocurrencies like Bitcoin. John Collison, Stripe co-founder and president, emphasized the improved user experience at the company’s Connect developer conference:

Transaction settlements are no longer comparable with Christopher Nolan films for length, and transaction costs are no longer comparable with Christopher Nolan films for budget. Stripe is bringing back crypto payments — this time with stablecoins, which are a way better experience.

Past and Future Crypto Engagements

Stripe’s history with cryptocurrency has been complex and cautious. Initially engaging with Bitcoin in 2014, the company pulled back in 2018 due to its unsuitability for transactions at the time. The recent return to crypto, specifically through stablecoins, shows Stripe’s adaptive strategy in a maturing digital payment landscape. 

The company is also considering expanding its crypto offerings beyond USDC, exploring other stablecoins and platforms, reflecting a potentially more enduring commitment to integrating cryptocurrency solutions.

This reintroduction is part of a larger strategy to diversify and enhance Stripe’s payment options. Stripe has also updated its platform to allow customers to integrate competing payment providers with Stripe’s financial services. This broader strategy aims to open up Stripe’s services to a wider market and cater to a more diverse set of customer needs.

Revolutionizing Security with Crypto-Agility

The new IST solution allows businesses to update their security systems without the need to replace physical products, providing a significant cost-saving advantage and ensuring business continuity. I

It is applicable to a wide range of products, from smart meters and automobiles to payment cards and 5G eSIMs. The ability to implement these changes directly onto existing products greatly enhances operational efficiency and compliance with regulatory changes, all while maintaining state-of-the-art security standards.

Marc Bertin, Chief Technology Officer at IDEMIA Secure Transactions, expressed pride in this innovative achievement: 

We are extremely proud of this technological advancement, which offers long-term top-notch security for everyday solutions used by millions. Our crypto-agility solution not only represents a leap in how we secure transactions but also showcases our commitment to leading the post-quantum security era with our expert solutions.

Strategic Expertise in Quantum-Resistant Technologies

IDEMIA’s position as a leader in the field is backed by its extensive expertise in post-quantum cryptography solutions. The company has been at the forefront of developing quantum-resistant algorithms and was the pioneer in offering a quantum-resistant 5G SIM card. Their ongoing contributions to creating industry standards for post-quantum technologies highlight their role as key players in shaping the future of cybersecurity.

The implications of IDEMIA’s crypto-agility solution are substantial, because they offer a new paradigm for security in an increasingly digital world. By allowing for seamless transitions to new security protocols, IDEMIA not only secures current technologies but also paves the way for future innovations that can adapt more readily to emerging threats.

Stablecoins: Promises vs. Realities

The BIS paper discusses the promise and reality of stablecoins maintaining value parity with fiat currencies—a goal that has proven challenging. Stablecoins, designed to bridge the gap between traditional fiat currencies and the volatility of cryptocurrencies, have been praised for their potential to offer stability, efficiency, and accessibility in digital transactions. 

The BIS report scrutinizes these claims, highlighting the critical need for robust regulatory frameworks to ensure these digital assets do not undermine financial stability. 

Stablecoins need to be as stable as the fiat currencies they aim to digitize.

With the stablecoin market forecasted to grow significantly, regulatory bodies worldwide are trying to implement measures to mitigate risks associated with stablecoin issuance. These measures cover licensing, reserve asset management, redemption rights, capital adequacy, consumer protection, and anti-money laundering compliance, among others.

Ripple’s Move: More Companies Enter the Stablecoin Space

Ripple, known for the XRP Ledger, has declared its intention to launch a stablecoin pegged to the U.S. dollar, seeking a slice of the $150 billion market. The company aims to differentiate its offering through the clear backing of U.S. dollar deposits, short-term U.S. government Treasuries, and cash equivalents.

The stablecoin market is over $150 billion today and is forecasted to exceed $2.8 trillion by 2028. There’s a clear demand for stablecoins that deliver trust, stability, and utility.

Regulatory Responses and Market Implications

The BIS report articulates a detailed framework for the regulation of stablecoins, delineating essential areas such as licensing requirements, reserve asset management, redemption rights, and operational resilience. Through its findings, the report advocates for a balanced approach that fosters innovation while safeguarding financial system integrity.

Effective regulatory responses are pivotal in harnessing the benefits of stablecoins while mitigating their risks

In parallel, Ripple’s move signals a growing acknowledgment within the crypto space of the necessity to align with regulatory expectations. 

We’re aiming for complete transparency. You know, we’ll do whatever we need to do to address those issues

David Schwartz, Ripple’s CTO

The BIS report and Ripple’s announcement underscore an important moment for stablecoins. Regulatory frameworks are evolving to ensure that these digital assets can deliver on their promise of stability without compromising financial system integrity. As the stablecoin market continues to expand, initiatives like Ripple’s not only contribute to the diversity of offerings but also highlight the critical role of regulatory clarity and innovation in shaping the future of digital currencies.

The trials, set to run from May to November 2024, are part of the ECB’s broader strategy to assess the feasibility and advantages of employing DLT in the core processes of financial transactions. The focus is on evaluating DLT’s capability to streamline euro-denominated issuances and delivery-versus-payment (DvP) transactions, which are crucial for the smooth functioning of financial markets.

Collaboration with Industry Leaders

Clearstream, a central securities depository and part of the Deutsche Börse Group, is the only CSD participating in the first wave of these ECB trials. By bringing its digital post-trade platform D7, enhanced with DLT capabilities, into the trials, Clearstream aims to demonstrate how tokenized securities can be effectively managed within the DLT framework.

Clearstream’s participation in the ECB trials is a significant milestone in our digitisation journey: we are expanding our D7 digital securities infrastructure with DLT components and fostering connections with the main digital payment solutions across the Eurosystem. We are thrilled to further collectively shape the future of an inter-connected digital European settlement landscape together with the ECB and our broad participant base. Of course, Clearstream will leverage the trial insights to further enhance D7 for the industry.

Jens Hachmeister – Head of Issuer Services & New Digital Markets at Clearstream

The ECB trials are a great step towards integrating DLT into the European financial ecosystem, potentially leading to more transparent, efficient, and secure transaction processes. By connecting with central banks’ digital offerings like the Bundesbank’s Trigger Solution and Banca d’Italia’s TIPS Hash-link, the trials also pave the way for greater interoperability and innovation within the sector.

Taurus, known for its dealings with banking giants like Credit Suisse and Deutsche Bank, will now extend its expertise in digital asset storage to Misyon Bank, catering to a wide range of entities, including stock exchanges, fintech firms, and central banks.

Elevating Turkey’s Financial Landscape

Dr. Önder Halisdemir, CEO of Misyon Bank, shared his enthusiasm about the partnership, emphasizing its alignment with the vision to transform Turkey into the “Switzerland of its region.” This alliance is expected to safeguard domestic and regional assets within Turkey’s boundaries, thereby enhancing its appeal to global investors. 

The collaboration is facilitated through MisyonTech, a wholly-owned subsidiary of Misyon Bank, which, alongside contributions from Istanbul Technical University and KPMG, is set to offer innovative local custody solutions for digital assets pending the completion of a local regulatory framework.

Taurus Co-Founder Lamine Brahimi expressed excitement over partnering with Turkey’s first Neo-investment bank, looking forward to supporting Misyon Bank in launching new digital asset services. This collaboration underscores the potential for Turkey to carve out a significant position in the realms of digital asset custody and tokenization within the region.

Yury Ushakov, a Kremlin aide, shared insights with the Russian news agency TASS, stating: 

Creating an independent BRICS payment system is an essential goal for the future, leveraging state-of-the-art tools such as digital technologies and blockchain.

Yury Ushakov

The vision behind this ambitious project is to offer a platform that is not only convenient and cost-effective for governments, common people, and businesses but also free from political influences.

The drive towards this innovation stems from the BRICS countries’ ongoing efforts to reduce their reliance on the U.S. dollar, a strategy known as de-dollarization. This has been a focal point of their financial strategy, aimed at increasing their independence in the global monetary arena. The development of the Contingent Reserve Arrangement, focusing on utilizing currencies other than the U.S. dollar, is part of this initiative

The move also aligns with the broader trends in financial technology, where digital innovations such as blockchain, crypto assets, tokenization, and artificial intelligence are reshaping the financial landscape. These technologies offer promising avenues for transaction efficiency, security, and accessibility on a global scale.