NAI500 Special Coverage: Cryptocurrency is Making the Leap into the Mainstream through the Services of Banxa Holdings Inc. (BNXA: CA)

Published on: February 23, 2021
Author: Amy Liu

The cryptocurrency market is at a tipping point.  Established coins, like Bitcoin (BTC) and Ether (ETH), have been on a meteoric rise up 62.96% and 103.13%, respectively YTD. Even meme currency Dogecoin (DOGE) has been experiencing huge gains, with YTD returns of 760.91%. How high these currencies will rise has been a matter of intense discussion and debate however, many experts agree that making cryptocurrency a part of a well-diversified portfolio could expose investors to the potential for huge returns while mitigating some of the risk.

The roller-coaster that is the crypto market may have been amusing to watch from the sidelines, but as these speculative currencies begin to gain more mainstream traction, investors are starting to sit up and pay a little more attention. For most equity investors, investing, buying, and selling crypto is still a mystery – and rightly so, there are experienced money managers that still don’t fully comprehend the market.

Fortunately, you don’t need to become a cryptocurrency expert to get in on the action. Companies like Banxa Holding Inc. (BNXA: CA) are helping to make cryptocurrency more accessible to people worldwide.

Outlook of the Cryptocurrency Market 

Bitcoin recently broke through another barrier, climbing above US$50K for the first time. News that electric car maker Tesla had purchased US$1.5 billion of the currency as part of a new investment strategy, and would soon be accepting Bitcoin as payment, sent the cryptocurrency soaring as investors scrambled to jump on board.

But this is simply one of many transactions that have brought cryptocurrencies from the fringes to the forefront of retail and institutional investor interest.

In addition to Tesla, popular mobile payment service provider Square and online payment giant PayPal have also recently purchased a significant amount of Bitcoin. They intend to accept the cryptocurrency as payment, further propelling the currency into the mainstream market.

It is important to note that previous gains in cryptocurrency have been fueled largely by investor speculation. However, the recent rally seems to reflect that growing confidence and mainstream market acceptance of cryptocurrency as a store of value and means of exchange is behind the upward push.

While there is much criticism surrounding the potential of cryptocurrency one day replacing gold as a safe haven investment, it would appear that it could, at the very least, make a wise complement.

What does Banxa Do?

Banxa is a (PSP) payment services provider bringing cryptocurrency to the people by offering a simple fiat-based means of buying, selling, and trading crypto. With a mission to make cryptocurrency equally accessible to everyone, they have partnered with over a dozen major exchanges and wallets. This fiat-to-crypto digital gateway solution is globally compliant, ensuring safety and legal compliance for all its customers, both foreign and domestic customers.

Why Should Investors Pay Attention to Banxa?

Earlier this year, Banxa announced TTV (total transaction value) growth of CAD$53.7 million, representing a nearly 1,000% increase from January 2020. With a current market cap of CAD$101.78 million, Banxa may seem relatively small compared to other digital asset brokers like Canadian competitor Voyager Digital (VYGR: CC); however, the company has demonstrated that they have big plans for the future.

Furthering their mission of bridging a fiat-based economy with the world of cryptocurrency, they have entered into a strategic alliance with Australian Post to enable the purchase of Bitcoin and other cryptos through one of their 3,500 postal outlets.

In another strategic arrangement, Banxa has announced that it will be partnering with hardware wallet pioneer Trezor. The deal will allow customers to purchase cryptocurrencies through Banax both in the new Trezor Suite and through cryptocurrency exchange comparison tool Invity.io.

Lastly, RaaS Advisory has recently initiated coverage on Banxa. During the evaluation by RaaS, BANXA’s share price sat at $2.10 per share, and in spite of this, the analyst report’s valuation of the company was $3.47 per share, 65 percent higher than market value.

Raas Advisory believes that BANXA’s business model is scalable and transferable to new jurisdictions. In particular, the company’s infrastructure can be extended to financial applications beyond cryptocurrency, such as decentralised finance (De-Fi).

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.

Cryptocurrency Fintech