The Role of White-Label Crypto Exchanges in Facilitating Adoption

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  • White-label crypto exchanges are organizations created to cater to businesses looking to develop their blockchain-based crypto services.
  • White-label crypto exchanges offer pre-developed protocols that allow other businesses to create customizable exchange platforms. 
  • Regulatory bodies across the globe have made it clear that for exchanges to operate within their regions, proof of security is a must.

In the past decade, the web3 industry has experienced astronomical growth. Since its first successful application, Bitcoin, decentralization has firmly rooted its core principles in the minds of many organizations. Amid web3’s numerous success stories and evolution from cryptocurrency to decentralized applications, crypto exchanges have experienced one of the highest success rates in this new era. 

Custodial and non-custodial exchanges have become a core component in the world economic forum, with the likes of Binance, Kraken, Coinbase, and Luno inspiring many investors, entrepreneurs, and innovators to take the SME mantle. Its influence has also sipped within Africa’s ecosystem, resulting in numerous success stories like Flutterwave and Yellow Card. 

The industry’s exponential growth in cryptocurrency has resulted in the emergence of a new form of exchange: white-label crypto exchanges. This new form of custodial exchanges has sought to empower cryptocurrency adoption further by providing the means for any organization to venture into the crypt sphere. This article aims to demystify what white-label crypto exchanges are and what added value they offer the industry.

What are white-label crypto exchanges?

Cryptocurrency has played a role in propelling the digital era into new realms. Its fundamental principles have resulted in the development of various sectors and industries. For instance, developers utilized blockchain technology to provide financial institutes with a stable version of cryptocurrency like Stablecoins. 

Others sought to bridge the gap between cryptocurrency and fiat currency, leading to the development of CBDCs. The performance and steady adoption rate of these digital assets resulted in the creation of various industries like fintech and the high rise of custodial and non-custodial exchanges. 

Other developers sought to improve the fundamental technology running cryptocurrency, thus creating new consensus mechanisms that have bolstered the performance rate and the TPS rate of various cryptocurrencies. This positive trajectory has only led to solidifying the future of cryptocurrency, and even if it were to fail, its useability has already grown beyond its initial application, Bitcoin.

Also, Read A new crypto exchange EDX Markets launched.

Due to this consistent evolution, it quickly became apparent that numerous organizations would be required to integrate cryptocurrency into their systems. This may vary between offering crypto payment gateways or introducing crypto-to-fiat conversion or trading services. Unfortunately, creating or launching any crypto-based services is daunting and cost-intensive.

White-Label-Crypto-Exchanges
White Label Crypto Exchange Software simplifies the complexities around launching a crypto-based service for businesses.[Photo/Medium]
White Label Crypto Exchange Software simplifies the complexities around launching a crypto-based services for businesses.[Photo/Medium]Since blockchain technology and smart contracts are still relatively new concepts, their complexity has proven to be cumbersome. For instance, to build a crypto-based system from scratch would take roughly one to two years and cost about $100,000. Thus, a new form of crypto exchange quickly saw this problem as an opportunity and tailored its functioning to not only provide crypto-based services but also the means for other businesses to enter the web3 industry.

White-label crypto exchanges are organizations created to cater to businesses looking to develop their blockchain-based crypto services. The term white label generally describes customizable services and solutions developed by one company and sold to another. The client then has the freedom to rebrand the product or services to fit their designs or company goals.

White-label crypto exchanges offer pre-developed protocols that allow other businesses to create customizable exchange platforms. The main object of this custodial exchange is simple: to enable the client to develop a crypto-based platform to provide crypto-services, which they can obtain ports thanks to the variations in prices. 

The organizations offer a range of features, including buying and selling crypto to fiat-crypto conversion, trading, staking, and holding cryptocurrencies. Furthermore, they offer customizable solutions that can fit the requirements of any organization.

Benefits of White-Label exchanges

Quickly expand the web3 industry.

The most apparent benefit of white-label crypto exchange is its ability to speed up the adoption rate of cryptocurrency. In a nutshell, these organizations generally make it easier for organizations to launch crypto-based services. The process of building such features from scratch takes several months, and even doing such a feat is not easy.

 Remember, if we take away the technicalities, benefits, and potential aspects of the crypto industry, it boils down to a man-eat-man ecosystem. The competition within the crypto sphere is stiff since it borders the supply and demand of the said crypto coin.

Also, the Read Bitrue crypto exchange platform lost US$23 million to a crypto hack.

If organizations focus on building crypto-based services but cannot find a suitable entry strategy, the organization will ultimately fail. By using the customizable exchange platforms white label crypto exchange offers, businesses can shift their focus into finding the best means to introduce their new services. In addition, they also reduce the long wait times, allowing enterprises to take advantage of specific waves experienced within the web3 industry.

Cost-effective

This benefit is also apparent and self-explanatory. It costs much more to build decentralized applications than to purchase the rights to a customizable exchange platform. The cost of buying one from scratch can range between $100,000 to $200,000, depending on the various features of the media. 

In contrast, marketing white-label enterprise software has a cost between $10,000 and $50,000, depending on the organization’s requirements. Furthermore, in case of any hindrance, various white-label exchanges soften, take responsibility, and improve upon several customizable exchange platforms, further reducing maintenance costs.

Enhanced Trading and Security Features

Since the FTX crash, security has become a must-have feature for any crypto-based platform. Regulatory bodies across the globe have made it clear that for exchanges to operate within their regions, proof of security is a must. This has resulted in mandatory audit checks and clearances from blockchain security firms. 

Furthermore, the integration of new security features, such as KYC/AML services alongside Zero Knowledge Proof features, has become mandatory. Acquiring such certificates is no easy feat. Crypto exchange from all over has revamped their entire security features, resulting in additional initial costs and increased service charges. In addition, many organizations have partnered with substantial amounts to acquire said certificates, causing many to retake their gas fees and severance charges.

Various customizable exchange platforms often have several security features and services. Businesses that opt for such services gain the full benefit of white labour structures. Another white-label ionization goes as far as offering KYC features on their software, alleviating the burden of acquiring one.

Faster and Cost-effective Server Deployment

This is another apparent benefit of customizable exchange platforms. White-label crypt exchanges often offer the option of setting up and deploying a service for an organization’s exchanges. Most of the time, such organizations provide to handle the entire process and the cost that accompanies it.

Overhauling the crypto sphere

White-label crypto exchanges like Antier’s crypto exchangeMaticz, PayBito, Coinsclone, HollaEX, and others have significantly overhauled the adoption of cryptocurrency. Despite the industry experiencing trying times throughout the year, its adoption rate has steadily improved ever so slightly. 

Currently, many organizations have opted to introduce a crypto payment gateway thanks to the benefits of global payments organizations like Visa, Paypal, and Mastercard. In addition, the ongoing cost trajectory of cryptocurrency is set to inspire many to enter the crypto sphere.

Also, Read MAS Propels Singapore’s Crypto Ecosystem with Balanced Regulation.

These events have presented the conducive requirements for white-able crypto exchange to thrive. The anticipated 2024 bull run spiked the adoption of cryptocurrency and decentralized applications significantly, and the benefits of customizable exchange platforms have never seemed better. 

White-label crypto exchanges minimize the exposure risk of any organizations seeking to enter the crypto sphere. Its plethora of reliable and well-tested features and services is sure to play a vital role in the ongoing rise of cryptocurrency.

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Ken Mutuku
Ken Mutuku
I am an enthusiastic writer who believes that facts, knowledge and opinions can be expressed vividly with just a few words. I think that all forms of writing achieve this; hence I have a wide area of expertise and interest, such as cryptocurrency, psychology and the human mind.