- DTCC agreed to buy the blockchain startup Surrrency Inc for $50 million.
- According to CEO Monthly, as of 2023, the global fintech industry is valued at $305. billion with a growiing CAGR of 6%.
- Securrency has combined Know Your Customer(KYC), Know Your Wallet™ (KYW), and Know Your Transaction (KYT) capabilities, providing a redundant security system.
Blockchain technology has ushered in an entirely new outlook on technology. Its decentralized, immutable, and secure features have inspired several developers to apply it in different industries. As a result, decentralized applications have become a common trend in this digital age. Hospitals, manufacturing industries, farmers, and schools have incorporated blockchain technology to overhaul their performance and secure vital data without infringing on the user’s control. Several emerging markets have also significantly benefitted from this revolutionary technology, but none have profited and impacted the livelihood of countless undermined communities like FinTech.
The fintech industry is among the highlights of the industry. The fintech industry is a by-product of developers tinkering with the fundamental concept of Bitcoin.
Today, a trend has emerged with traditional banking systems developing fintech branches or purchasing blockchain startups to extend their services. In recent news, US Clearinghouse, Depository Trust & Clearing Corp, has purchased Securrency, a fintech startup built on a blockchain network.
The fintech industry expands as DTCC Buys Securrency.
The entire goal of the fintech industry is to provide users with better financial services previously unattainable from traditional financial systems. Its scalability, fast, and secure transaction rate have trumped feats in a decade that took years for banking systems to accomplish. For instance, before the tits fintech industry took off in Africa, the continent had a significantly low financial inclusion rate.
According to experts before the industry, only a few urban areas had access to financial services, representing a significantly low portion of the population. Fortunately, as Bitcoin’s value grew, so did the value of blockchain technology. Soon after, Africa’s ecosystem proved extremely compatible with decentralized finance systems, leading to a significant surge of blockchain-based finance systems.
This movement would develop into a billion-dollar franchise, leading to the likes of Flutterwave, Yellow Card, and Mara. Eventually, FinTech became one of its fastest and most lucrative emerging markets since e-commerce.
This global trend soon inspired many banks to integrate blockchain technology to keep up with changing times. The positive and superior technology of fintech was all too real and threatened the very existence of banks. Thus, instead of competing with emerging markets, financial institutions cooperated and adapted to it. This trend led the DTCC to seek a fintech brand, and Securrency presented the perfect partners.
According to the announcement, DTCC agreed to buy the blockchain startup Surrrency Inc for $50 million. This strategic initiative enhances DTCC services by providing fintech services, a popular trend in today’s market. In addition, this marks DTCC’s first significant investment since 2013, showcasing the rapid movement toward the fintech industry.
According to Frank La Sala, DTCC’s CEO, acquiring Securrency Inc. will mark a pivotal point for the US Clearing House. He clarified that portaging Securrency Inc.’s various services would advance the issuance of financial instruments like exchange-traded funds on blockchain platforms.DTCC has openly announced its interest in venturing into the blockchain space. The global fintech industry has consistently grown with promising markets ready for the taking. Currently, experts have estimated that blockchain possesses the capability to bring a sea change in financial markets. Bitcoin and the crypto market have proven this by growing into a trillion-dollar franchise in just two decades.
According to Citigroup, at least $5 trillion in traditional financial assets could be represented as blockchain network digital tokens. In addition, the growing dependence on stablecoins will represent a significant dynamic shift from fiat currency. Today, several regions across the globe and in Africa turn to stablecoins due to their high valuation and fast transaction speed. The fintech industry provides the means to store and transfer such funds, making it a primary cog in the machine.
Who is Securrency?
The fintech industry has significantly grown over the years. According to CEO Monthly, as of 2023, the global fintech industry is valued at $305. billion with a growiing CAGR of 6%. This industry is built upon the innovation of multiple blockchain startups, each seeking a way to profit from the rising need for better financial services.
Securrency is among the many startups that have significantly profited by improving the financial inclusion of numerous regions. Essentially, Securrency Inc. is a financial market infrastructure technology with numerous APIs. Since 2015, this blockchain startup has created powerful regtech and fintech infrastructure.Their plethora of services has delivered unmatched multi-jurisdictional identity and compliance portability across different networks. Today, Securrency Inc. is well known in the fintech industry through its extensive clientele and convenient compliance tools, offering tri interoperability between blockchain and traditional systems.
Unlike many blockchain startups in the fintech industry, Securrency sought to act as a bridge between old and new financial stems. This approach caught the interest of numerous investors, leading to $100+ million in funding. The company’s unique undersea ng of blockchain technology and its innovative uses have enabled it to broaden the fintech industry’s scope.
According to their official site, their emphasis on ledger-agnostic interoperability and “Plug-and-Play” integration provides a future-proof infrastructure set. This approach allowed their developers to integrate legacy financial systems with distributed ledger technology seamlessly. As a result, the Securrency Interoperating system, an open framework of services and interfaces, was designed to integrate emerging DLTs and existing banking and enterprise infrastructure smoothly.
Furthermore, the blockchain startup has taken additional steps to protect its users from hackers and scammers. In recent months, blockchain technology has suffered significant losses through hacks. Its relatively new nature has become a bane to its existence as hackers consistently find new loopholes.
To mitigate this vulnerability, Securrency has combined Know Your Customer(KYC), Know Your Wallet™ (KYW), and Know Your Transaction (KYT) capabilities, providing a redundant security system. In addition, its developers emphasized flexibility, ensuring that any unknown variable is flagged upon detection.
The fintech industry will eventually dominate
Generally, the fintech industry represents a new outlook in technology. For centuries, traditional financial systems have slightly improved in terms of technology while still retaining their central concept of centralization. Fintech challenges that belief and provides better, faster, and more secure systems.
By unbundling financial services to individual offerings, it has significantly outpaced traditional financial systems in scale, reachability, security, and speed. In addition, blockchain technology has wholly forgone the centralization movement and given power directly to the user. Its growing scale has forced many institutes to take a step back from centralization and research the benefits of blockchain technology.
With the digital era steadily gaining global roots, fintech has managed to compete with other industries. For instance, today, many fintech services have collaborated with e-commerce platforms to offer better payment options for users. This, in turn, has led to an increase in the mobile industry, forcing most businesses to seek a digital presence.
This rapid shift to a digital-first mindset has forced many banks to invest heavily in similar products. For instance, Goldman Sachs launched Marcus‘s consumer lending platform in 2016 to enter the fintech space. African banks like Standard Bank and Equity Bank have actively introduced or partnered with blockchain startups to extend their services.
It’s only a matter of time before fintech completely dominates the financial sector. Branch ecosystems like crypto, RegTech, and other web3 industries have grown significantly, surpassing previous valuations. The fintech industry will become the world’s next banking system.