By George Ward
TrueLayer, a fintech payment firm, is collaborating with Coinbase to increase its payment options. The partnership will allow Coinbase users in the UK to fund their accounts using mobile bank apps.
This move is part of TrueLayer’s broader push into the crypto sector. Besides, the company is also considering launching a Pound-pegged stablecoin.
The new TrueLayer-Coinbase partnership will allow users in the United Kingdom to connect their bank account to Coinbase. Hence, they can easily authenticate and confirm all payments through the app.
According to reports, Coinbase plans to roll out the feature across Europe soon. Francesco Simoneschi, the Founder and CEO of TrueLayer, said that this integration would be cost-effective for merchants.
“Companies that process crypto transactions pay huge amounts to card networks. However, open banking eliminates these hefty fees,” the CEO added.
Furthermore, Simoneschi said the transaction fee users pay is one-fifth of what they pay when they use card payments or Apple Pay. However, the collaboration comes at a time centralized exchanges are under scrutiny.
This is due to the ongoing troubles surrounding the FTX exchange. According to Simoneschi, TrueLayer and FTX discussed a similar partnership at some point.
However, he stated that both platforms did not work together. Interestingly, Simoneschi noted that they partnered with Coinbase because of its reputation.
Also, the centralized exchange is a publicly-traded company. Meanwhile, the global market decline also affected TrueLayer.
Earlier in September, the company laid off about 10% of its staff. However, the founder believes the platform does not need to raise funds. He believes the company has enough funds to run its operations.
TrueLayer Wants To Launch A Pound-backed Stablecoin
Besides Coinbase, TrueLayer also revealed that it is working with other crypto platforms, Luno and Ziglu. The company began its first foray into the crypto sector in 2021.
It also has a team focused on connecting the DeFi and traditional finance sectors. Apart from crypto, Simoneschi said the company wants to develop a Pound-pegged stablecoin. According to him, the number of Pound-pegged stablecoins in the market is few compared to USD-pegged stablecoins. Moreover, other regions should work towards diversifying their stablecoin offerings.
Meanwhile, the TrueLayer CEO asserted that the company has strong ties with regulators. He noted that working with regulators is very important to avoid future problems.
Meanwhile, other firms are also thinking of creating a British Pound-backed stablecoin. In June, Tether, the USDT stablecoin issuer, released GBPT, a Pound-pegged stablecoin.
Circle, another stablecoin issuer, also wants to develop a Pound-pegged stablecoin. Data shows that nearly 100% of stablecoins are pegged to the US Dollar.
Hence, a stablecoin pegged to a currency other than the USD would likely record strong adoption.