Abra, a popular crypto-fiat wallet along with an exchange application, is planning to create a decentralized global banking solution built on top of Stellar blockchain. The move could be inspired by Stellar’s $5 million investment in Abra earlier this year.
Bill Barhydt, CEO of Abra during the SDF's digital second quarter review meeting on July 15, talked about the company’s roadmap and emphasized particularly on “interest-earning capability,” which will be one of the most sought after features in coming days. Barhydt while talking about the upcoming services and features and the interest-earning services commented:
“This allows consumers, for example, people who aren't even familiar with cryptocurrency, to store dollars and earn significant interest on those dollars.”
During the meeting, Barhydt also said that the interest-earning features would also be made available for cryptocurrencies along with the staking services.
How Does Abra Work?
Abra being a crypto/fiat wallet exchange app and now collaborating with banks, exchanges, and other financial entities and acts as a liquidity provider through its platform. Recently it has shifted its focus towards retail players to offer its application and expand its reach.
Elaborating on his plans for introducing interest-earning, Barhydt explained that they would partner with large institutional players who would work in tandem with its backend infrastructure to offer “a very sophisticated lending system.” Talking about their plans and how Abra aims to create the global banking solution, Barhydt said:
“For us to take this to another level, Abra is building an entirely new part of our business to facilitate the movement of funds globally, in real-time, using the Stellar network. What this will enable for us in all forms of global lending.”
He also explained that the success of defi in the past couple of years made him believe that the crypto market is more than ready to accept crypto lending and interest-earning potential that these digital assets posses. He explained:
“We want to take this to another level, and use the Stellar platform to enable traditional banking applications at a global scale truly.”