The cryptocurrency market is witnessing a surge of interest from institutional investors, who are increasingly looking for ways to leverage the benefits of blockchain technology. According to Coinbase’s Vice President of Institutional Products, Brett Tejpaul, the demand for on-chain data and analytics is growing as institutions seek to gain insights into the behavior and trends of the crypto ecosystem.
An onchain crypto ramp is a service that allows you to convert your fiat money (such as US dollars or euros) into cryptocurrencies (such as Bitcoin or Ethereum) and vice versa, using a blockchain network. Unlike traditional exchanges, onchain crypto ramps do not require you to create an account, verify your identity, or trust a third-party intermediary. Instead, you can use your own wallet and interact directly with the blockchain, which is a distributed ledger that records all transactions and ensures their security and transparency.
In a recent interview with CoinDesk, Tejpaul said that Coinbase has been investing in building tools and services that cater to the needs of institutional clients, such as custody, prime brokerage, and execution. He also revealed that Coinbase has partnered with leading blockchain analytics firms, such as Chainalysis and Elliptic, to provide its customers with access to on-chain data and intelligence.
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Tejpaul explained that on-chain data can help institutions understand the dynamics of the crypto market, such as the supply and demand of different assets, the liquidity and volatility of various trading pairs, and the activity and sentiment of different user segments. He said that on-chain data can also help institutions identify and mitigate risks, such as fraud, money laundering, and regulatory compliance.
An onchain crypto ramp works by connecting you with a network of liquidity providers, who are willing to exchange their cryptocurrencies for your fiat money or vice versa. These liquidity providers can be individuals, businesses, or organizations that have access to both fiat and crypto markets. They can offer competitive rates and fast transactions, depending on the supply and demand of each market.
To use an onchain crypto ramp, you need to have a wallet that supports the blockchain network of your choice. For example, if you want to buy Ethereum, you need a wallet that supports the Ethereum network. You also need to have some fiat money in your bank account or card that you want to convert into crypto.
Then, you can visit the website or app of an onchain crypto ramp service and select the amount and type of crypto that you want to buy. The service will show you the best available rate from its network of liquidity providers and generate a QR code or a link that contains the details of the transaction.
You can scan the QR code or click the link with your wallet and confirm the transaction. The service will then send your fiat money to the liquidity provider and the liquidity provider will send your crypto to your wallet address. The whole process can take from a few minutes to an hour, depending on the network congestion and confirmation time.
Using an onchain crypto ramp has several benefits compared to using traditional exchanges or other methods of buying and selling crypto. Some of these benefits are:
Privacy: You do not need to create an account, verify your identity, or share any personal information with the service or the liquidity provider. You only need to provide your wallet address and your payment method.
Security: You do not need to trust a third-party intermediary or store your funds in a centralized platform that can be hacked or shut down. You have full control over your funds and transactions at all times.
Speed: You do not need to wait for days or weeks for your funds to be deposited or withdrawn from an exchange. You can complete your transactions in minutes or hours, depending on the network speed.
Accessibility: You do not need to have access to a bank account or a card that supports international payments. You can use any payment method that is available in your country or region, such as cash, mobile money, or online transfers.
Flexibility: You do not need to stick to one blockchain network or one cryptocurrency. You can choose from a variety of networks and currencies that are supported by different onchain crypto ramps.
There are many onchain crypto ramp services available in the market, each with its own features, fees, and supported networks and currencies. Some of the most popular ones are:
Ramp Network: A decentralized protocol that connects users with liquidity providers across multiple blockchains and payment methods. It supports Ethereum, Polygon, Binance Smart Chain, Bitcoin, Solana, Tezos, and more.
MoonPay: A centralized platform that enables users to buy and sell cryptocurrencies with fiat money using bank transfers, cards, Apple Pay, Google Pay, Samsung Pay, and more. It supports over 80 cryptocurrencies across 160 countries.
Transak: A centralized platform that allows users to buy and sell cryptocurrencies with fiat money using bank transfers, cards, UPI (India), SEPA (Europe), Faster Payments (UK), and more. It supports over 50 cryptocurrencies across 60 countries.
Wyre: A centralized platform that enables users to buy and sell cryptocurrencies with fiat money using bank transfers, cards, Apple Pay (US), Google Pay (US), Samsung Pay (US), and more. It supports over 10 cryptocurrencies across 50 countries.
On chain crypto ramps are a convenient and secure way of accessing the decentralized web. They allow you to convert your fiat money into cryptocurrencies and vice versa without creating an account, verifying your identity, or trusting a third-party intermediary. They also offer competitive rates and fast transactions from a network of liquidity providers.
You can choose from a variety of onchain crypto ramp services that support different blockchain networks and payment methods. If you are interested in learning more about onchain crypto ramps, you can visit their websites or apps and try them out for yourself.
Tejpaul added that on-chain data can also enable institutions to discover new opportunities and strategies in the crypto space, such as arbitrage, market making, and lending. He said that on-chain data can help institutions optimize their portfolio allocation, execution timing, and risk management.
Tejpaul concluded that on-chain data is becoming a key factor for institutional adoption of crypto, as it provides a transparent and reliable source of information that can enhance their decision making and performance. He said that Coinbase is committed to supporting its institutional customers with the best-in-class on-chain data and analytics solutions, as well as other products and services that can help them navigate the crypto market with confidence and ease.