I spoke to Raj Bagadi, CEO of Scallop, a UK-based fintech and crypto start-up that seeks to bridge the gap between DeFi (decentralized finance) and traditional banking services.
Raj did graduate studies in business development and management and recently completed a PGC in economic development from the University of Oxford. He is also a certified UK anti-money laundering specialist. He also has extensive experience in the financial industry and is an expert in financial regulation and anti-money laundering. Prior to starting Scallop, Raj advised blockchain and cryptocurrency start-ups, providing technical and software solutions.
Why did you start scallop?
RB: There are two main reasons. First, we saw a gap in the market for a single solution for banking and crypto services. There are companies offering only digital banks for fiat currency and exchanges or platforms offering wallets or accounts for digital assets, but there is still a lot of friction between fiat currency and digital currency. There are high transaction times and fees when transferring your money between the two, so we have built a platform that provides a seamless interface between fiat, crypto, and DeFi (decentralized finance).
The second reason is that we believe digital assets and digital payments are the future. We have seen the transition from fiat money to electronic money, and now a new transition from electronic money to digital money is happening. However, crypto or DeFi users are still not able to easily spend or use their assets or tokens in real life. We therefore wanted to address this painful point which is a significant obstacle to the widespread adoption of digital assets. Scallop, provides the tools for this, in particular with one of our Scallop Pay products – which allows users to purchase any good or service online or in stores with cryptocurrency or DeFi tokens; Whether or not the vendor accepts digital assets, we take care of them on the backend and allow vendors to receive their preferred silver format.
Why do you think the scallop is the Duture?
RB: What we are offering will make the day-to-day use of digital currency easier. We provide the tools for mainstream adoption. For example, the bank accounts we offer allow users to set up direct debits, receive salaries, and send and receive payments, locally or internationally – just like you would with a traditional bank account. We have a total of 10 products, split between crypto and banking services and the entire Scallop ecosystem is based on facilitating this wider transition from fiat / electronic money to digital currency for users across all sectors. aspects of their life.
Additionally, we allow users to directly interact with DeFi (Decentralized Finance) applications from the bank account – which is an exponentially growing area. For example, in 2019 there was only $ 100 million stuck on DeFi platforms, by January 2020 it was around $ 1 billion and by June 2020 it had peaked at around $ 87 billion. – and we expect that number to increase. This is an area that none of our competitors have yet exploited and so we are looking to capitalize on our advantage as a leading player here.
These two aspects are key obstacles to the inevitable transition to digital payment solutions and by solving / providing them we hope to be there for a very long time.
What are your perspectives on the future of the industry?
RB: We believe the demand will only increase. The regular use of technology by people has caused a significant shift in consumer demand for digital-only online services across industries. Over the past 6 years in banking / payment services we have seen exclusively online banks take market share from traditional banks due to this demand. Now there is another transition underway where digital payment providers will take market share from traditional banks and online-only providers – this is exactly how the technology is developing and the direction in which it is accelerating. .
Additionally, payment giants such as PayPal and Mastercard created a lot of hype in this area a few months ago by announcing that they would start offering Bitcoin, Ethereum, and Litecoin on their networks, but that’s not just anymore. the hype; these giants are extremely serious about this space and also see the long term potential here. PayPal announced this week that it will offer full crypto services in the UK, having rolled out the same offering in the US.
(In that aspect, we think we’re ahead of the curve; we created Scallop in July 2020 with these exact features in mind and these giants are only releasing these products now. So in terms of competition, we are not releasing these products. believe that we are ahead of other startups but it is the space giants, which have the means to accelerate their transition in this digital war, with which we are really in competition).
What can we expect for scallops over the next 12 months?
RB: We have a lot to do over the next 12 months. We will have the launch of our digital token (SCLP), as well as the launch of our product in the coming months. This will include Scallop bank accounts and virtual and physical debit cards, as well as digital wallets and bank-grade hardware wallets in which users can securely store their digital assets. We also have our own network – Scallop Chain – coming in Q2 2022.
In terms of business, our product will initially be launched in the EU and UK, and then we will expand our business to Asia and Oceania in the first half of 2022, where we have already started the necessary processes for the regulations.
Stay tuned for a great year to come!
Image by WorldSpectrum from Pixabay
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