All roads lead home — Public Mint as a natural crypto ramp
The fiat-native blockchain is the ideal doorway in and out of the cryptoverse. Read more.
Despite the obvious advances made so far within the crypto space in terms of UI/UX and overall accessibility, the barrier of entry for the less tech inclined remains significantly high. Going through that first song and dance of piecing together chains, wallets, tokens, DApps, DEXs, CEXs, NFTs, along with everything else out there and how they relate to one another can be quite overwhelming — as many of us well know.
Public Mint was founded with the clear purpose to make the cryptoverse accessible to anyone. It stands to reason, then, that there’s something to be said about Public Mint as a possibility to easily on-ramp and off-ramp into and out of the cryptoverse.
What’s a ramp, and what does it do?
First, let’s focus on the difference between on-ramps and off-ramps — and this is an easy one: an on-ramp allows you to to transform fiat money (like Dollars and Euros) into any crypto asset, whereas off-ramps allow you to transform those same crypto assets back into traditional currency. To those that work both ways, allowing you to get in and out of the cryptoverse, we simply call ramps.
Ramps are an essential tool in bridging the gap between the traditional financial systems, or TradFi, and all things crypto. They even have several real-world use case scenarios, if done right. And, as the world’s first fiat-native blockchain, Public Mint is primed to perform in fulfilling that role seamlessly.
At this point, you’re probably wondering “but what actually happens to my money?”, and rightly so. It’s really quite simple — and transparent:
- When our custodial partners confirm a deposit was made, they immediately send instructions to Public Mint, which automatically creates a digital representation of the funds in the depositor’s wallet address. If the address owner hasn’t previously gone through KYC, they will need to do so at the moment of deposit.
- Any address that holds fiat can initiate a withdrawal to their own bank account. If the address owner hasn’t previously gone through KYC, they will need to do so at the moment of the withdrawal.
- If the address owner has already been through KYC, then instructions are automatically sent to our custodian partner, who will proceed to transfer funds to the designated bank account.
- After the transaction is signed and the custodial account is updated, the corresponding on-chain digital representation of the Fiat funds is automatically destroyed.
Why does KYC matter? Two words: avoiding scams. Some transfer methods, like P2P (we’ll get into it a bit further down the article), have been known to be used for money laundering and evading taxes. Proper KYC prevents these types of malicious actions, since all operations are traceable to their rightful owners.
As of now, you can fund your account, as well as cash out, via stablecoins (USDC, for now) and wire transfer. We are currently working towards implementing credit and debit cards and getting ACH back up.
Minting a tighter World
Much is being said about web3’s devious intents of creating an unregulatable parallel economy, but once you start out as a fully compliant means of connection between both worlds, those arguments fly out the window, giving way to a more positive vision — one of true financial democratization.
Compliance with SEC and FDIC regulations is at the very foundation of all we do and build — and so it will remain when we move into other financial ecosystems with their own regulatory bodies. We are laying the groundwork for whoever builds on Public Mint to have a fully compliant rail for any financial operation between TradFi and any CeFi or DeFi solution, be it of their own design or an already existing one.
“Finance democratization means that ALL have the same level of access to these opportunities — which applies to people and corporations, big or small.”
One way to on-ramp funds, particularly popular in less developed countries, is peer-to-peer transfers, or P2P. This is when someone that wants to convert their cryptocurrencies into fiat trades directly with someone who wants to buy cryptocurrencies with fiat. The latter would make a bank transfer to the former, who would then transfer said cryptocurrency into the other person’s wallet, foregoing the need for any middle man.
Albeit one of the quickest ways to do it (the whole thing can be done in under five minutes), it is also one of the less secure. In fact, some countries, like Singapore, have banned P2P transfers as they were being used to erase all trails of illegal funds. Besides, you do not have any security against being scammed, and you have to trust the other person will go through with the transfer of cryptocurrency after you’ve sent them your hard earned money. So, there is definitely space for a truly compliant, low-cost ramp system like Public Mint.
Another noteworthy application would be the possibility of moving funds back and forth from a Decentralized Exchange (DEX) to your bank account, without the need of going through a Centralized Exchange (CEX) like Binance or Nexo — and avoid all the gas fees involved.
Finance democratization means that ALL have the same level of access to these opportunities — which applies to people and corporations, big or small. Although the advantages of crypto for enterprises and NGOs that need to move large sums around is crystal clear, its usage is still met with much resistance, mostly due to the lack of trustworthy, liquid, user friendly ways to onboard, move and withdraw funds in the cryptospace.
The case for Public Mint as a crypto ramp gets especially stronger now that the roads are open for transit with other blockchains.
So, whether you are an independent BUIDLER or working for a third party, come talk to us! Let’s explore together all the possibilities that Public Mint presents. We even have a dedicated #developers channel on our discord server — and we’re only waiting on you!
Thank you, and see you on the other side 🟢
About Public Mint
Public Mint is an open and complete blockchain platform for fiat money, where funds are fully collateralized and held on deposit with regulated, FDIC-insured institutions. Public Mint offers an open, fiat-native blockchain and APIs, ready for anyone to build fiat-based applications and accept credit cards, ACH, wire transfers, stablecoins and more. On top of that, the Public Mint EARN platform offers users automated and diversified returns on USD assets, leveraging the power of blockchain and DeFi.