Cashaa, a UK-based cryptocurrency bank, is expected to launch operations in India from mid-August. Unicas, a joint venture between United and Cashaa, claims to be the world’s first cryptocurrency financial institution with physical branches.
The crypto bank will offer savings, lending, and trading services. Shortly after launching around Independence Day, the bank plans to allow its users to open a Fixed Deposit (FD) or Recurring Deposit (RD) in Bitcoin and other cryptocurrencies, just like FDs. banking.
The FD in crypto will have a specific maturity period. Similarly, like an RD bank, Cashaa plans to allow small investors to invest small amounts on a daily basis from their pocket.
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“Our aim is to cater to retail investors / traders. Just like FD and RD banks, where retail investors invest to secure their future goals, we can offer FD and RD facilities in cryptocurrencies where small investors can invest small amounts, say 1000 rupees as and when they want. The USP of Cashaa is that you can go to a branch, do trades, ask questions, ”says Dinesh Kukreja, Managing Partner and CEO of ‘UNICAS.
ZebPay, a cryptocurrency exchange already offers a fixed cryptocurrency deposit where you can deposit your cryptocurrency with them for a period of up to 90 days and earn fixed interest on your deposit.
Currently, Unicas has three branches in the country in Delhi, Jaipur and Gujarat. The head office is in Jaipur, Rajasthan. “We hope to open more branches across the country soon,” says Kukreja.
Cashaa offers various products under the Savings Account for Indian Rupees and Cryptocurrency. It will offer an interest rate of 4 percent per year to 9.67 percent per year. Interestingly, the crypto bank will also provide door-to-door service to its premium customers in cities where they have physical branches.
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You can also take out a loan using your cryptocurrency as collateral. Unicas will charge interest at the rate of 0.04% per day. It also allows you to borrow for a period as short as a day.
According to Cashaa, Indian banks appear to be cracking down on cryptocurrencies and exchanges, although cryptocurrencies have not been formally banned in India. As a result, exchanges are now turning to Cashaa for fiduciary services.