Banxa Holdings Inc. (TSXV:BNXA, OTCQX:BNXAF, FSE:AC00) was covered last week by Fundamental Research Corp., who provided a buy rating for the Payment Service Provider/PSP company and its fiat-to-cryptocurrency(cryptocurrency exchange) business.
Key Conclusions:
“We believe the popularity of cryptos is driven by their fast execution of transactions, the ability to bypass conventional intermediary fees, and in some cases, its use as a potential hedge against inflation (i.e. Bitcoin’s limited supply). Although the sector is highly competitive, we believe Banxa’s affiliation with the top crypto exchanges, along with its early mover advantage, sets the company up for growth going forward.”
“We believe Banxa is well positioned to capture the rising popularity of crypto investments. Although the sector is highly competitive, Banxa’s affiliation with the top crypto exchanges, and early mover advantage, will play a key role in its growth going forward. We are initiating coverage with a BUY rating, and a fair value estimate to C$15.58.”
Value Proposition:
Banxa is focused on building an internationally compliant fiat-to-crypto payment infrastructure for exchanges, wallets, and other businesses in the space. It attempts to address the following issues in the digital assets sector:
| Digital Assets Sector Challenges | Banxa Solution |
| ● Regulatory complexity, along with continually changing regulatory landscape in digital assets
● Fragmented payment structure ● Inefficiencies in running and managing multiple fiat-to-crypto networks and banking channels ● Liquidity challenges in digital currencies Fraud and other compliance related challenges |
● Local and global payment options
● Single interface for exchanges, wallets, and other cryptocurrency businesses ● Compliant in markets it operates ● Full Anti-Money-Laundering (AML) and Know-Your-Customer (KYC) compliant infrastructure ● Fast processing times |
For the full report, please click the following link:
https://www.dropbox.com/s/g59kgo10i295nql/Banxa%20-%20Mar%202021%20-%20Initiating.pdf?dl=0
Disclaimer: The company described in this article is a customer of NAI Interactive Ltd. This material is for informational purposes only and is not intended as a recommendation or offer or solicitation for the purchase or sale of any securities or financial instruments, or for transactions involving any financial instrument or trading strategy.
