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How does crowdfunding operate in the cryptocurrency sector? It is an innovative approach to raising capital.

Cryptocurrency crowdfunding is a new, direct, immediate, simple and participative way to raise capital. This approach has gained popularity because it allows companies and individuals to quickly access funding or invest in rapidly growing startups.

Businesses seeking financial support and individuals wanting to fund their projects can use cryptocurrency crowdfunding platforms. These platforms enable them to reach a broad base of potential investors without depending on traditional banking channels or venture capital. In this article, we will explore crypto crowdfunding and how it works.

What it is and how it works

Crypto crowdfunding is a fundraising method that utilises cryptocurrencies instead of traditional fiat currency as the primary source of capital. Unlike conventional fundraising, this process often occurs without intermediaries or third parties, enabling investors to access opportunities directly.

This approach significantly speeds up the fundraising process and improves security and transparency. Today, startups can leverage blockchain technology and smart contracts to raise capital quickly and efficiently, bypassing the cumbersome procedures that were common before the digital age.

The advantages of crowdfunding in crypto

Cryptocurrency crowdfunding offers several advantages over traditional funding methods. First, it is generally more efficient, faster, and flexible, providing a reliable infrastructure. This efficiency is crucial for both companies seeking funding and investors.

Companies benefit from the security provided by smart contracts, which leverage the transparency of blockchain technology to manage fundraising effectively. The blockchain permanently records all transactions and details related to fundraising, ensuring complete transparency. This allows investors to monitor how their funds are used in real-time.

Additionally, cryptocurrency crowdfunding provides global access to investors, eliminating the geographical barriers often found in traditional funding. Like conventional crowdfunding, investors are encouraged and supported in evaluating the organisations or projects they wish to fund, but they have access to more independent information for their research.

The main types

There are various types of crowdfunding in the crypto space, with the most well-known—though often misused—being Initial Coin Offerings (ICOs). This fundraising method can be safe and beneficial; a prime example is the ICO of Ethereum, which allowed the project’s first supporters, led by Vitalik Buterin, to invest early on. However, when successful ideas emerge, they tend to be exploited by many, including those with questionable intentions who are simply looking to profit.

Only two parties typically participate in Initial Coin Offerings (ICOs): the company and the investors. Initially, the start-up launching the fundraising event presents its project to potential investors through a whitepaper summarising the business plan. Additionally, the presence of a token is crucial, and it must have a specific function. For example, the token may grant investors access to certain services related to the product or provide them with a share of the company’s future dividends.

Following the rise and decline of Initial Coin Offerings (ICOs), new forms of crowdfunding in the cryptocurrency space emerged, including Initial Exchange Offerings (IEOs). IEOs signify a notable advancement in crypto crowdfunding, as cryptocurrency exchange platforms directly handle them. Unlike independent ICOs, IEOs involve an exchange that oversees the crowdfunding process.

The main advantages of Initial Exchange Offerings (IEOs) include:

1. Increased Security: IEOs are conducted on regulated exchange platforms, providing investors greater trust and security than Initial Coin Offerings (ICOs), often linked to fraud and scams.

2. Access to Markets: IEOs provide startups with a direct channel to investors through the exchange platform, enabling them to access a large user base without establishing their investor network.

3. Simplified Procedures: IEOs streamline the participation process, allowing investors to use funds directly from their accounts on the exchange platform. This eliminates creating a separate digital wallet or navigating complex procedures.

4. Technical Support: Exchange platforms hosting IEOs typically offer technical support and assistance to investors and startups, reducing the risk of errors when purchasing cryptocurrencies.

5. Regulation: Since IEOs are hosted on regulated platforms, rules and procedures are established to prevent illegal activities and fraudulent behaviour and ensure compliance with national and international laws.

Initial Exchange Offerings (IEOs) provide a secure and convenient way for start-ups to raise funds through cryptocurrencies and for investors to participate in these projects. Thanks to blockchain technology, IEOs enable quick and transparent transactions.

To learn more about how our B2B services can support your company’s growth through this type of fundraising and other blockchain and cryptocurrency-related services, please visit our B2B services page or contact us at [email protected].

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Does your company have a cryptocurrency portfolio or engage in trading? Subaccounts are the best way to manage different strategies or delegate activities.

Discover how to effectively manage your corporate cryptocurrency portfolio using Young Platform’s sub-accounts.

What are Sub-Accounts?

In a trading platform, a ‘Sub Account’ (SA) is a subordinate account to a primary account, known as a ‘Master Account‘ (MA). The MA can create multiple secondary and segregated accounts, each designated for a different purpose.

Subaccounts are typically used for various reasons, primarily to manage funds or assets separately. Here are some common scenarios where the Sub Account functionality can be beneficial:

1. Management: Sub-accounts enable traders to allocate funds for different trading strategies or markets. For instance, a trader might have one SA dedicated to day trading and another for long-term investments.
2. Monitoring: With sub-accounts, transactions executed in different strategies or portfolios can be monitored separately. This feature simplifies record-keeping and performance evaluation.
3. Risk Management: Sub-accounts allow traders to set appropriate risk limits for various trading activities, helping to prevent excessive losses in a specific account.

In summary, Subaccounts provide greater flexibility and control in fund management. Now, let’s explore the advantages of using the Young Platform service.

Young Platform Pro Sub-Accounts

The functionality is available on demand and exclusively from the Pro version of Young Platform, making it very simple and intuitive. First, let’s see what it entails.

The Master Account has full powers to:

• Depositing and withdrawing funds to and from any AS
• Transfer funds between accounts (free of charge, no commission)
• Viewing and managing HS orders
• Checking HS balances
• Displaying transactions executed by ASs
• Enabling or disabling specific cryptocurrency pairs for individual ASs
• Remove SA
• Resetting HS passwords
• Viewing the access history of ASs

In addition, Sub-Accounts can be classified as either ‘Managed’ or ‘External’. The ‘Managed’ mode is intended for the company’s legal representative who wants to utilise both a Managed Account (MA) and an Automated Strategy (AS). On the other hand, the ‘External’ mode is more suitable for teams. In the ‘External’ mode, the legal representative oversees the MA, while the AS can be assigned to team members or collaborators.

One significant advantage of Young Platform is the ability to combine this functionality with other services, such as the Only Euro Bot. This integration simplifies receiving cryptocurrencies in your account without hindering your ability to make recurring trades or purchases.

The Only Euro Bot facilitates handling crypto payments by automatically converting them into euros. However, this process can interfere with trading activities. Sub-Accounts quickly resolve the issue: you can activate the Bot on one account while using the other account to focus on your market strategy.

Want to know more? Write to [email protected], our operators will contact you within 48 hours.

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Discover how Young Platform can enhance your business through cryptocurrencies. Explore our range of business services.

Businesses are rapidly adopting Bitcoin and other cryptocurrencies. Merchants, large corporations, and institutions are embracing these digital assets for various reasons, including investment opportunities, operational optimization, and direct customer engagement.

Businesses range from small merchants accepting cryptocurrency payments to large corporations integrating Bitcoin into their treasury operations to hedge against inflation and economic instability, taking advantage of this scarce, anti-inflationary asset. Furthermore, thanks to specialized service providers, cryptocurrency can now be used to purchase various goods and services, including cars, houses, airline tickets, groceries, and much more.

Innovation is thriving in various sectors, especially in sports. Organizations like the NBA and football teams such as Juventus are utilizing tokens to engage with their fans, providing opportunities for them to vote and interact with the club. Meanwhile, asset tokenization is transforming industries like real estate and art, creating new investment avenues.

Cryptocurrencies represent a new frontier in digitizing value, offering exceptional opportunities across multiple fields. Companies like Young Platform, a Turin-based cryptocurrency exchange, have created customized B2B services designed to help businesses, institutions, and non-profit organizations maximize the advantages of the crypto market. These services include strategic investments, payment optimization, and effective fundraising tools.

This article will explore how your company can integrate cryptocurrencies into its business strategy, taking advantage of opportunities while addressing any challenges with a clear and prepared vision. To successfully navigate this new era, companies should consider three fundamental questions:

1. What benefits can cryptocurrencies bring to my company?

2. Why do we want to adopt cryptocurrencies?

3. What factors must we consider to ensure a safe and effective implementation?

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What can cryptocurrencies do for my company?

Adopting cryptocurrencies can provide significant advantages and create new opportunities for your company. Firstly, cryptocurrency users tend to belong to a cutting-edge demographic: they are tech-savvy, innovation-focused individuals who typically have above-average disposable income. This target audience, which favors premium and luxury services, presents an appealing niche for companies seeking to position themselves as innovative and forward-thinking.

Moreover, embracing cryptocurrencies is a strategic move to attract this audience and aligns your company with a European context where central bank digital currencies (CBDCs) are developing. Currently in the testing phase, these instruments could become integral to the digital economy in the coming years. Thus, adopting cryptocurrencies is a proactive step towards an already unfolding future.

Cryptocurrencies offer innovative features and serve as a promising investment option, providing a digital liquidity alternative. They present opportunities to enhance traditional treasury functions, particularly international money transfers, which often incur high costs and lengthy processing times. Utilizing cryptocurrencies can significantly reduce these inefficiencies, allowing for better management of corporate capital and helping to mitigate the risks posed by inflation, which can erode cash value over time.

The long-term investment potential of cryptocurrencies is evident, especially considering Bitcoin’s exponential growth. Bitcoin has achieved remarkable peaks in recent years, solidifying its status as a valuable asset.

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Three key aspects of integrating cryptocurrencies into business

If your company plans to incorporate cryptocurrencies into its business strategy, you must consider three key elements:

Long-term perspective

Cryptocurrencies are characterized by their volatility, which can pose significant risks in the short term. Therefore, it is advisable to view them as long-term investments, enabling more thoughtful decisions and reducing exposure to sudden fluctuations.

Regulation and compliance

Adopting cryptocurrencies necessitates careful consideration of European and tax regulations. For instance, the Markets in Crypto-Assets (MiCA) regulations oversee the cryptocurrency market, while Italy’s 2023 Budget Law addresses the taxation of capital gains from such investments. Understanding and complying with these regulations is crucial to avoid potential legal or tax problems.

What is MiCA, and what does the European regulation mean for crypto?

Transaction optimization

Cryptocurrencies provide exceptional efficiency for business-to-business transactions. Their decentralized nature allows for a significant reduction in transaction costs—up to 5,000 times lower—and greatly enhances execution speed—up to 430,000 times faster. This makes them an ideal option for conducting business transactions globally.

Enabling cryptocurrency payments: the ‘Hands-Off’ approach

Why do we want to adopt cryptocurrencies? 

Many companies adopt cryptocurrencies primarily to facilitate payments without directly managing digital assets. This ‘hands-off’ approach involves automatically converting received cryptocurrencies into fiat currency through a specialized B2B service provider, allowing companies to keep cryptocurrencies off their corporate balance sheets.

By adopting this model, which utilizes cryptocurrencies such as stablecoins (pegged 1:1 to the value of the euro and dollar) or layer two solutions, businesses can quickly enter the world of digital assets. This strategy enables companies to accept cryptocurrency payments, reach new customer segments, and increase transaction volume without significantly changing their operational structures or directly handling the technical complexities associated with cryptocurrencies.

Because cryptocurrencies are converted into fiat currency immediately, they do not appear on the company’s financial statements. This method simplifies tax matters and reduces exposure to the cryptocurrency market’s volatility. 

Third-party providers, such as Young Platform, handle conversions, payments, and technical and compliance issues. These include adhering to anti-money laundering (AML) regulations and customer verification (KYC) procedures when opening a Business Wallet for your company. While the company can delegate these tasks, it must still comply with current regulations.

Read more on this topic:

• International B2B Payments: how to reduce costs and time for cross-border transfers with Blockchain
• Bot Only Euro: the solution for accepting crypto payments without tax impacts

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Integrating cryptocurrencies into the Treasury 

When a company goes beyond merely enabling cryptocurrency payments, it can implement more advanced strategies to incorporate digital assets into its operations and treasury management. These strategies may include accepting cryptocurrency payments without automatically converting them to fiat currency or allocating a portion of the corporate treasury to cryptocurrencies like Bitcoin.

Bitcoin, the first cryptocurrency, has been one of the best-performing assets of the past decade. It has also shown remarkable resilience during economic crises, such as the COVID-19 pandemic. Using cryptocurrencies as a reserve in the treasury has become a popular strategy to combat the effects of long-term inflation. 

For example, in the past 10 years, Apple has lost $15 billion due to inflation—an issue that assets like Bitcoin could help alleviate.

Treasury Management

Cryptocurrencies held for treasury purposes are managed through digital wallets (business wallets), which require a robust structure to ensure security and accessibility. 

1. Hot Wallet: This type of wallet is used for everyday transactions, providing quick access to cryptocurrencies.

2. Cold Wallet: This wallet is utilized for long-term holdings and protects assets by keeping them offline, offering greater security.

Young Platform employs Fireblocks, one of the most advanced and trusted custody platforms globally, for its custody services. By adopting a multi-layered structure that combines hot wallets for daily transactions with cold wallets for long-term custody, Young Platform ensures optimal protection against potential threats. Additionally, it follows a one-to-one custody model, guaranteeing that customers’ cryptocurrencies are never lent out or used for other purposes.

Tax and compliance aspects

Adopting cryptocurrencies comes with fiscal responsibilities that need to be managed effectively. To assist with these complex issues, third-party providers like Young Platform offer tailored support to business customers looking to integrate cryptocurrencies into their operations. Each business is assigned a personal account manager who helps develop and implement a customized strategy from the options available in our B2B Hub. This includes managing cryptocurrency payments, either by holding them as digital assets or converting them automatically into fiat currency.

Additionally, the account manager helps create a long-term treasury strategy, which is valuable for optimizing the management of digital assets and achieving specific financial goals. 

Young Platform also features an integrated tax hub that provides all the necessary documentation for tax reporting and offers personalized advice from experienced accountants in the cryptocurrency sector. This service ensures compliance with current regulations and minimizes companies’ risks and operational challenges.

For more on this topic:

• Bitcoin for corporate treasury
• OTC Desk: what it is and how it works
• How Blockchain Can Empower Your Business
• What are Sub-Accounts, and what are they for?

Download the treasury report

From Peer-to-Peer Value to Decentralised Finance

Cryptocurrencies represent a significant revolution by enabling peer-to-peer value transfers without intermediaries. This unique feature naturally led to their initial application in finance, resulting in a complex and dynamic market known as Decentralized Finance (DeFi).

Within the DeFi space, users can access services that were once exclusive to the traditional financial system, such as earning interest, taking out loans, and managing wealth. These transactions occur through decentralized protocols, using blockchain technology to ensure transparency, security, and automation—all without the involvement of central institutions.

Third-party providers have intuitive infrastructures and user-friendly interfaces for companies looking to explore DeFi securely and straightforwardly. These tools enable even those without technical expertise to access DeFi services without navigating the complexities of the underlying protocols.

One example of this is staking services, which provide companies with an easy way to convert passive resources into productive assets and create new streams of passive income.

What is Staking?

Staking, in its simplest form, involves locking cryptocurrencies in a protocol to help support the network. This process contributes to the security and validation of transactions while allowing the cryptocurrencies to remain the user’s or company’s property. During the staking period, these assets are temporarily unavailable for other transactions.

Participants are incentivized to stake their cryptocurrencies through periodic rewards, similar to earning interest. The Annual Percentage Yield (APY) can vary widely depending on the protocol, ranging from 3% to over 20%. 

Another advantage of staking on Young Platform is flexibility. If liquidity is needed, the release time for staked assets is relatively short, typically between 3 to 20 days.

Ethereum is a particularly popular example of staking, the second largest and most established cryptocurrency after Bitcoin. Ethereum also serves as the foundation for Decentralized Finance (DeFi), which is why many companies focus their staking projects on this asset.

For more on this topic:

• Staking introduction: an innovative way to put your crypto to work

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Planning cryptocurrency implementation: a strategic approach

What aspects must we consider to do this safely and effectively?

Integrating cryptocurrencies into business operations requires a clear and structured implementation plan, like any technological innovation. This process not only initiates organizational and operational changes but also necessitates a shift in mindset within the company.

To create an effective strategy, the implementation plan must address several key questions:

• What short- and long-term goals do you want to achieve?
• Will the company limit itself to using cryptocurrencies for payments, or will it adopt a broader strategy?
• What internal and external collaborations are essential for success?
• Do current decisions allow for broader adoption of cryptocurrencies in the future?
• How will you integrate the security needs of the crypto ecosystem with existing corporate cybersecurity policies?
• What additional resources will be required beyond those currently available?
• What new skills or tools need to be introduced?
• How will the implementation roadmap be structured?
• What processes will be used to monitor progress, transaction execution, and supplier performance?

Before committing to full implementation, many companies choose to conduct a ‘pilot project,’ similar to how they would approach a new technology.

A practical example of cryptocurrency adoption is an internal pilot project managed by the Treasury Department, which oversees the company’s and its subsidiaries internal financing. The process may include:

1. The initial purchase of cryptocurrencies.

2. The use of these resources for peripheral payments.

3. Monitoring transactions, from payment to receipt and revaluation of assets.

This pilot project helps identify opportunities and challenges as a contrasting medium, highlighting the potential benefits and operational difficulties of adopting cryptocurrencies.

The Importance of Training

Team training is essential for the success of any project, regardless of its scale. While many market solutions are designed to be user-friendly, having a basic understanding of the industry enhances the management of digital resources and helps identify new business models.

Young Platform provides B2B training services that assist companies in implementing customized strategies to leverage blockchain technology’s potential. 

Our offerings include:

• Tailored Courses: E-learning modules that provide a comprehensive sector overview, including current regulations.

• Vertical Workshops: Specialized training sessions to develop specific skills for dedicated teams, such as legal, tax, or technology.

• B2B2C Pathways: Targeted training solutions for customers to optimize their use of business services and promote greater adoption.

For more on this topic:

• Why include blockchain in corporate training

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A well-planned implementation of cryptocurrencies can significantly transform business operations, but it requires a thoughtful strategy and a step-by-step approach. By experimenting with a pilot project, investing in team training, and collaborating with experienced providers, you can effectively navigate the challenges and capitalize on the opportunities presented by this innovation. Please contact your account manager to learn which business services best meet your needs.

You might be interested in:

• Crowdfunding in crypto: all the advantages and how to do it
• Corporate welfare: what is it and how does it work?

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Young Platform introduces Bot Only Euro (BOE), an innovative service designed for companies that want to accept cryptocurrency payments without dealing with management complexities. With BOE, cryptocurrencies received are automatically converted into euros, simplifying accounting and minimizing volatility risks.

The growth of digital and international payments

Europe remains a world leader in the overall volume of digital B2B transactions, driven by the adoption of advanced technologies in international payments. However, traditional banking systems often need to improve their speed and cost.

Blockchains for cross-border payments offer an extraordinarily convenient alternative, with costs up to 5,000 times lower than traditional methods and speeds up to 432,000 times faster. Using stablecoins – digital currencies pegged to the value of conventional currencies such as the euro – also guarantees stability and security, eliminating the volatility of classic cryptocurrencies.

Why are stablecoins crucial?

Stablecoins are distinguished from other cryptocurrencies by their stability. For example, 1 USDC equals 1 dollar, while other stablecoins replicate the euro’s value. They are ideal for international payments, making transactions cheaper, faster and more transparent. This makes them perfect for:

• Cross-border payments without high costs or bank delays.
• International trade, where unfavourable exchange rates can be an obstacle.
• Payments in crypto are for NFT purchases, royalties, or digital services.

Bot Only Euro: convert crypto to Euro automatically

Accepting payments in crypto represents a unique opportunity for companies in all sectors, especially in areas such as import-export, where cryptocurrencies can overcome the inefficiencies of traditional banking systems.

Young Platform’s BOE service makes this easier:

• Automatic conversion: every payment received in cryptocurrencies is converted into euros at the market rate in real time.
• Flexibility: companies can select which cryptocurrencies to convert or keep in their wallet.
• Tax stability: The immediate conversion generates no capital gains or losses, thus avoiding additional tax implications.
• Simplified operation: no more manual crypto sales transactions.

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Blockchain payments and speed with Layer 2

Thanks to Layer 2s, such as the Lightning Network, blockchain payments become even faster and more scalable. These systems are ideal for:

• International remittances with minimal costs.
• Cross-border B2B payments, ensuring security and scalability.
• Global micro-payments, where speed is of the essence.

Blockchain payments guarantee traceability, transparency and security that surpass traditional banking systems.

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The Importance of the BOE for Companies

There are numerous businesses to which the Bot Only Euro is dedicated; just think of import-export. Accepting Bitcoin and other virtual currencies can make foreign trade cheaper. For example, suppose a partner company is based in a non-European country where the currency has an inconvenient exchange rate or whose banking system is inefficient. In that case, payment on the blockchain can circumvent these obstacles.

Companies that choose to accept cryptocurrency payments can reap numerous benefits:

1. Access to a growing market: The adoption of crypto as a payment method is continuously expanding and is driven by customer demand.
2. Efficiency in international payments: overcoming the limitations of traditional banking circuits, especially in countries with poorly performing financial systems.
3. Support for Web3 innovations, such as NFTs, represents a new revenue and digital identity frontier.

The case of NFTs

In 2020, the trend of Non-Fungible Tokens, blockchain-based digital objects that can represent works of art, collectables, or certificates, exploded. Thus, many brands and artists, from fashion houses to singers to video games, have started to create their own collections; these tokens have become a must for brands’ brand identity.

NFTs are usually purchased with cryptocurrencies, which go to the author, i.e., in this case, the company or artist. In addition, they can generate royalties, as they secure the copyright on the blockchain and the corresponding remuneration for the use of the work.

Consequently, any company that issued one or more NFTs could receive cryptocurrency payments and revenues.

How to activate the Bot Only Euro?

Activating the BOE service is simple. To get started, you need to open a Business Account on Young Platform, which allows companies to:

• Receive cryptocurrencies directly into the corporate wallet.
• Convert them automatically into euros, simplifying cash management.

To receive cryptocurrency payments on the Young Platform account, any company can simply share its wallet address with the customer. 

Contact the dedicated business services team to discover all the benefits and activate Bot Only Euro. Write to [email protected] and start turning crypto payments into an opportunity for your business now!

Visit the page dedicated to companies, start-ups, non-profit organisations and institutional clients.

Related topics 

• International B2B payments: the solution is on blockchain
• OTC Desk: what it is and how it works
• What are Sub-Accounts, and what are they for?
• Bitcoin for corporate treasury

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Blockchain payments are up to 5,000 times cheaper and 432,000 times faster than traditional bank transfers, revolutionising international transactions.

International B2B payments are undergoing a profound digital transformation driven by businesses of all sizes increasing adoption of innovative technologies. In 2023, the total volume of these transactions reached $39.3 trillion, with a projected compound annual growth rate (CAGR) of 11.4% between 2023 and 2028.

According to a survey by the Capgemini Research Institute, Europe remains the global leader in total digital B2B transaction volume, while the Asia-Pacific region significantly contributes to the sector’s international expansion. This growth is closely tied to the rise of B2B online marketplaces, which surpassed 750 platforms worldwide in 2023 and are expected to reach 1,000 by 2025. By 2030, these marketplaces’ gross merchandise value (GMV) could hit $26 trillion.

While globalisation initially drove growth in the B2B payments sector, the real breakthrough has occurred in recent years, particularly in the aftermath of the pandemic. The surge in digital transactions has pushed many businesses towards B2B e-commerce, fundamentally reshaping the commercial landscape.

The meaning of B2B

B2B (business-to-business) refers to transactions, relationships, or commercial exchanges between two businesses rather than between a business and an end consumer. This model is widely adopted across various industries, including wholesale trade, professional services, and digital B2B platforms.

In essence, B2B encompasses direct interactions between businesses, focusing on providing products, services, or solutions that support business operations and growth.

Use cases for international B2B payments.

Businesses frequently need to make cross-border payments in a range of scenarios, including:

• B2B E-commerce
• Import and export activities
• Software subscriptions (SaaS)
• Salaries for international employees
• Corporate trading and investment
• Repatriation of funds and treasury flows (for multinational corporations)

However, traditional payment methods face significant challenges in costs and processing times, which can directly impact cash flow and business growth.

FinTech Innovation and Blockchain

In response to these challenges, FinTech companies, such as Young Platform, are driving advancements in instant payment technology. This is particularly critical given that only 13% of European banks have robust infrastructure to support fast payments.

Collaboration with FinTech providers enables businesses and banks to accelerate processes across several market segments:

• B2B (Business to Business): Transactions between businesses.
• B2C (Business to Consumer): Payments from firms to consumers.
• C2B (Consumer to Business): Payments from consumers to businesses.
• P2P (Peer to Peer): Direct transfers between individuals.

According to a survey conducted by Capgemini Research Institute, 21% of banks interviewed globally prefer to collaborate with existing FinTech companies to leverage their expertise and technology. Relying on external solutions instead of developing internal systems reduces costs and time to market, enabling the development of scalable solutions for a wide variety of targets.

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Costs are a critical issue in international payments

High costs of traditional methods

Traditional payment methods, such as international bank transfers, credit card networks, and wire transfers (SWIFT or SEPA), continue to incur significant costs, directly impacting the affordability and efficiency of cross-border transactions.

• High Fees: Credit card transactions cost between 2% and 4% for international payments, while bank transfers often include hidden fees due to the complexity of global networks.
• Currency Conversion Costs: Exchange rate fees and currency volatility can significantly increase final costs.
• Nostro/Vostro Accounts: Some banks use separate foreign currency accounts with high operational costs, passing the burden onto customers.

According to the Remittance Prices Worldwide report by the World Bank:

• The average cost of remittances in G8 countries is 5.87%.
• In G20 countries, this rises to 6.47%.
• Regions like Europe and Central Asia (ECA) saw significant increases in 2024, with costs rising from 6.66% in 2023 to 7.39% in 2024.

Blockchain: a more cost-effective alternative

In contrast, blockchain payments offer significantly lower costs. Depending on the blockchain network used, fees for international transactions can be drastically reduced:

• Ethereum: $6.42 per transaction, competitive compared to traditional methods.
• Solana: $0.007 per transaction, one of the fastest and most affordable solutions.
• Polygon PoS: $0.02 per transaction, ideal for micro-payments.
• Avalanche C-Chain: $0.16 per transaction.
• Base: $0.21 per transaction.
• Arbitrum: $0.25 per transaction.
• Optimism: $0.28 per transaction.

Blockchain technology introduced by digital and FinTech services is becoming an increasingly attractive option for reducing international transfer costs and improving transaction efficiency.

Slow Settlement Times

Traditional payment methods often suffer from lengthy settlement times, causing delays in fund availability:

• Automated Clearing House (ACH): 1-3 business days.
• International wire transfers: 1-5 business days.
• Debit/credit card payments: 1-3 business days.
• Paper cheques: 2-5 business days (plus potential postal delays).

In contrast, blockchain payments offer much faster processing times:

• Bitcoin: ~60 minutes.
• Ethereum: ~15 minutes.
• Stellar: ~5 seconds.
• Sui: Less than 1 second.

Poor User Experience and lack of traceability

International payments face numerous challenges regarding transparency and security, which can slow operations and increase risks, especially for small businesses that are often less equipped to address these issues.

• Fragmented Regulations: Each country has its own rules, making compliance difficult and creating inefficiencies in traditional payment systems.
• Limited Visibility: Traditional methods often provide a poor user experience and need more transaction traceability, complicating operation monitoring.

Fraud risks and security in International Payments

International payments are particularly vulnerable to cyberattacks and fraud attempts, especially when using outdated systems. The slowness of traditional payment methods increases the likelihood of fraudulent interventions.

In contrast, blockchain networks offer a solution to these challenges by providing:

• Enhanced Speed: Faster transactions reduce the time window for potential fraud.
• Improved Traceability: Every transaction is recorded on a public, immutable ledger, ensuring complete visibility and security.
• Higher Security Standards: Advanced encryption and decentralised structures make blockchain payments far less susceptible to cyber threats.

How new technologies benefit businesses

Adopting advanced technologies for international payments provides three key advantages for businesses:

1. Market Expansion: More efficient payments facilitate access to foreign markets and enhance global trade opportunities.
2. Process Automation: Automation reduces errors, accelerates transaction processing, and strengthens fraud prevention mechanisms.
3. Greater Transparency: Companies gain better visibility over costs, processing times, and exchange rates, allowing for more accurate financial planning.

Blockchain and Its Impact on B2B Payments

The blockchain is transforming international B2B payments, offering a unique combination of speed, transparency, security, and reduced costs, making it one of the most promising technologies in the global financial sector.

Advantages of Blockchain

Blockchain enables transactions with distinctive benefits:

• Fast and Cost-Effective: Payments made on the blockchain can be up to 5,000 times cheaper than traditional methods like bank transfers and up to 432,000 times faster, particularly for cross-border transfers.
• Traceable: Every transaction is recorded on an immutable public ledger, ensuring transparency and ease of monitoring.
• Secure: Using stablecoins such as Tether (USDT) and USD Coin (USDC) eliminates the volatility risks of traditional cryptocurrencies, as these are pegged 1:1 to fiat currencies like the US dollar or euro.
• Regulated: Stablecoins like USDC already comply with international regulations, including the EU’s MiCAR framework.

Stablecoins: A Solution for International Payments

A stablecoin is a cryptocurrency designed to maintain a stable value over time. It is typically pegged to a reference asset such as a fiat currency (e.g., the US dollar or euro), a commodity (e.g., gold), or a basket of assets. This type of cryptocurrency combines the stability of traditional currencies with blockchain technology, enabling fast, cost-effective, and transparent transactions. Stablecoins are used in international payments, protection against cryptocurrency volatility, and as a bridge between traditional and digital financial systems.

For example, the USD Coin (USDC) is pegged 1:1 to the dollar. This means that 1 USDC always equals 1 US dollar.

Layer 2: the next frontier in payments

The term Layer 2 refers to technological solutions that operate on top of a primary blockchain (called Layer 1, such as Ethereum or Bitcoin) to improve scalability, reduce transaction costs, and increase processing speed. These solutions offload some operations from the main blockchain by executing them off-chain while still ensuring security and decentralization. Layer 2 solutions are essential for addressing the network limitations of Layer 1 blockchains, such as congestion issues. Many of them support stablecoins, which, as mentioned, are well-suited for payments due to their stable value. Additionally, with ultra-low transaction costs, they are ideal as a payment system.

Examples of Blockchain Applications

Leading companies are embracing blockchain-based solutions:

• Visa B2B Connect: Utilises blockchain for bank-to-bank transactions without requiring cards.
• Mastercard Send: Provides instant payments via a private blockchain.
• Stripe and USDC: Enables payments with regulated stablecoins like USD Coin, ensuring compliance and security.

Innovative platforms like Young Platform support businesses adopting blockchain for international payments, offering simple, efficient, and customisable tools to improve global payment processes.

Simplify Your International Payments

To learn how blockchain can optimise your company’s international payments, contact the Young Platform team at [email protected].

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Related Articles

• Bot Only Euro: The solution for accepting crypto payments without tax implications
• OTC Desk: What it is and how it works
• What Are Sub-Accounts For?
• Bitcoin for Corporate Treasury Management

The applications of blockchain in business range from traceability to cyber security. Find out how to integrate it into your business

Companies today are increasingly data-driven, data that they collect, process and use to improve their products or operations. This is combined with the continuing trend of technology towards automation. The exemplary fruit of these two currents is artificial intelligence: think of how much data ChatGPT’s software alone requires.

AI, however, is not the answer to everything. So here’s why blockchain can facilitate both the management of data and its automation.

The problem of trust in data

Today we have a large surplus of data: data that is more or less useful, more or less truthful, more or less sensitive or accessible. Managing this information correctly from the source is crucial to protect both people and organisations.

The consequences can vary in scope: from fake news that makes us look bad, to a serious breach of privacy that leads to financial losses.

After all, the data we believe in and how we read it create our reality. When data is falsified for whatever reason, communication problems can arise. What happens if a service communicates wrong information to its customer, or if the error occurs between two partner companies? Trust is broken, the customer or partner is lost. 

Not only that, the consequences can be even more serious: imagine what a mistake in a medical record or in the address of a parcel means.

But there are even more common examples that demonstrate the importance of trust in data. Would you buy a designer dress, knowing that it was produced through exploitation? Or organic food, knowing that it was not grown according to these parameters?

Unfortunately, there are many cases where producers ‘get away with it’, due to a lack of visibility of a product’s history, fragmented in so many places and intermediaries.

We have now surrendered to the normalcy that in all relationships, what cannot be controlled, must be left to blind trust. But it does not have to be that way.

Technology can help us in this too, and blockchain is especially perfect for replacing that margin of  blind trust with justified trust. Let’s look at the various application cases.

Traceability and verifiability

Imagine the blockchain as a register of immutable data. No data can be changed: there is only one version of the facts, the original one.

In addition, it is not controlled by a single authority, but can be compiled and managed with the consent of all those involved in the system. This makes information impartial and shared.

This is music to the ears of those sectors that fight counterfeiting every day. Especially when it comes to luxury goods, the value often lies in the origin. If the origin is certified, the customer will have complete confidence in the value of the good and will be incentivised to buy it.

Not only that: counterfeiting represents the biggest challenge globally for legal documents, financial documents and goods such as pharmaceuticals or foodstuffs. It costs companies more than 7 per cent of their annual expenditure, amounting to almost $4 trillion each year on a global scale.

For fashion brands, counterfeiting represents illicit competition resulting in a loss of sales of more than $50 billion every year. So Louis Vuitton, Prada and Cartier collaborated to create Aura, a blockchain system that allows the history of luxury products to be tracked and reliably authenticated. Microsoft and ConsenSys, a company specialising in blockchain technology, were involved in developing the technological infrastructure.

The traceability and immutability of data is also crucial in the supply chain.

When integrated, blockchain can offer real-time visibility into the entire production and distribution process. This means that companies can monitor every step a product undergoes, improving overall efficiency and creating added value. 

This is the case for Nestlé, which adopted blockchain technology to ensure the security of its supply chain, particularly focusing on ingredients used in the production of baby food such as puree and pouches produced by Gerber. This decision was influenced by events such as the salmonella contamination scare involving large quantities of baby milk powder in France in early 2018, as well as the E. coli outbreak affecting lettuce in the United States. In this context, ensuring food traceability has become paramount.

Security and privacy

The blockchain uses advanced cryptographic techniques to protect transactions and data. Moreover, since they are distributed networks, they do not have a vulnerable central point. This makes them resistant to intrusion: it is very difficult for anyone to try to hack or breach a blockchain network, as it would require a huge amount of resources and would be extremely complex. This feature greatly improves data security and minimises the risk of unauthorised access or data breaches. 

In 2023, Statista’s analyses revealed that cybersecurity spending exceeded $71 billion. The following year, this figure increased by 11% compared to the previous year, reaching an impact of over $79 billion on businesses. Projections suggest that, although 2023 marked the most expensive period in the last decade for cybersecurity, 2024 is expected to surpass it significantly.

Engineers at the Defense Advanced Research Projects Agency (DARPA), the technology development wing of the US military, have developed a blockchain-based encrypted messaging system that allows US military personnel to exchange vital information in real time, anywhere in the world, without fear of interception by foreign hackers.

Staying in the context of data security, thanks to blockchain and the use of cryptography, the level of data privacy is highly programmable. One can choose a blockchain that only authorised persons have access to, with the aim of protecting sensitive data, or one can verify personal data without learning about it.

In any case, the recorded data is always immutable and shared by all participants.

It is no coincidence that applications in the field of digital identity and healthcare are among the most interesting.

One such company is Health Linkages, which leverages blockchain technology to promote transparent management of sensitive data, increase auditability of analyses and improve compliance in the healthcare sector. Thanks to Health Linkages’ blockchain, only authorised operators can share patient data. In addition, it records every single health event chronologically, providing physicians with a clearer picture for making medical decisions.

Discover opportunities for your business

According to research conducted by Fortune Business Insights, the size of the global blockchain technology market was estimated at $11.14 billion in 2022 and is expected to grow from $17.57 billion in 2023 to $469.49 billion by 2030, showing a compound annual growth rate (CAGR) of 59.9 per cent during the forecast period.   
With the expanding growth opportunities in the market and the wide range of possible applications and use cases, more and more companies are making significant investments in this innovative technology. If you would like to find out how your company can integrate blockchain into its business model, please email [email protected] to access our white-glove services.

With the expanding growth opportunities in the market and the wide range of possible applications and use cases, more and more companies are making significant investments in this innovative technology. If you would like to find out how your company can integrate blockchain into its business model, please email [email protected] to access our white-glove services.

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Understanding OTC: beneficial for large-volume transactions in the crypto market.

What does OTC (over-the-counter) mean in the context of the crypto market? This term refers to transactions that occur directly between two parties outside of exchanges. OTC trading is particularly popular among traders handling large-value orders, as it offers distinct advantages.

Explore the meaning of OTC and why it’s a compelling option in this article.

What does OTC mean?

OTC stands for over-the-counter and refers to financial transactions conducted directly between parties, bypassing regulated or public markets. These operations take place privately between the buyer and the seller or through intermediaries like banks, dealers, or brokers.

The transaction terms—such as price, quantity, expiration date (if applicable), and other conditions—are negotiated directly. These negotiations can be done verbally, by phone, via email, or on a specialised platform.

Although OTC transactions occur outside regulated markets, they are still subject to prevailing financial regulations within the respective jurisdiction.

The advantages of OTC in the crypto market

In the crypto market, OTC trading has specific benefits, particularly regarding liquidity.

This service is often sought by institutional investors, high-volume traders, and individuals who wish to trade substantial amounts of cryptocurrency outside public exchanges. Typically, these transactions involve amounts exceeding €50,000.

Trading such large volumes on an exchange can lead to challenges for both the trader and the broader market participants.

Market volatility: The relatively lower crypto market liquidity than traditional financial instruments means that large trades can cause excessive price volatility. These temporary price spikes could lead to slippage for other traders or even trigger false trend signals (e.g., a bull trap).

Order fulfilment issues: Most exchanges lack sufficient liquidity to fulfil a large order at a single price point. To execute such an order, the exchange must aggregate smaller offers from the order book, often resulting in partial execution or rejection of the order if the volume is too large.

The Young Platform OTC desk

Young Platform’s OTC service caters to investors and businesses looking to buy or sell significant amounts of cryptocurrency.

Our clients’ needs extend beyond simple trading. Business accounts may aim to diversify corporate liquidity or to convert large crypto payments into euros, such as capital increases that require notarisation in fiat currency.

Key features of our OTC desk

• Access to over 70 trading pairs (crypto-fiat and crypto-crypto).
• Transactions start from €50,000, with no upper limit.
• One-on-one contact via phone.

How does an OTC transaction work?

• Contact the team via email.
• Receive instructions on accessing the desk.
• Get a quote: The OTC desk will provide a price and the estimated value you’ll receive. The offer is valid for one minute, during which you can accept or decline and await a new quote.
• Execute the order: Once you accept a price, the order is processed, and the corresponding amount is credited to your Young Platform account.

Additionally, you can request limited orders or support for transfers and related operations.

Contact us now to execute an OTC transaction at [email protected]. 

The information in this article is for information purposes only and does not constitute an incentive to invest.

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