BVNK, a global payment infrastructure provider, has launched Layer 1 for better stablecoin payment systems.
This decision comes amid increasing demand among stablecoin deployers for self-hosted solutions. Meanwhile, markets are bracing for the MiCA launch next week, with new requirements expected to disrupt stablecoin activity in the European Union.
BVNK Debuts Layer 1
Donald Jackson, BVNK co-founder and CTO, said Layer 1 would help businesses bypass the complexity of blockchain product development. It is a new self-custody digital asset infrastructure customized to enable swift and secure deployment of stablecoin payments.
“Layer1 is the result of years of learnings from building our own global payments business. Having used direct integrations as well as other “wallet as a service” providers in the past, we decided to build a product that we wished existed. Within a few minutes using Layer1 you can send and receive digital assets across multiple blockchains and stablecoins without any blockchain specific knowledge. The best part (which wasn’t easy to achieve!), is that it’s all self hosted. Your data is private, no central service to depend on, no restrictive rate limits, no external custody risk, no provider outages and so on. It’s all within your own control and infrastructure while maintaining the highest security standards,” Jackson told BeInCrypto in an exclusive interview.
Layer 1 sets itself apart from other market alternatives, giving businesses full control and ownership over their data and digital asset keys. Wallet creation, asset management, and third-party integrations are some of the automated features on the Layer 1 platform’s catalog. With these features, businesses can control their digital assets more safely and effectively.
Also Read: Stablecoin Regulations Around the World
In an official blog released on Thursday, the team noted that the infrastructure would simplify the in-house development of blockchain payments systems. BVNK co-founder and CEO Jesse Hemson-Struthers echoed Jackson’s remarks, highlighting the increasing demand for self-hosted solutions across different industries. With Layer 1, firms get access to core stablecoin payments infrastructure, sparing themselves time to develop differentiated products.
BVNK’s moves, launches, and integrations alike highlight the opportunities for growth within the digital asset industry. The Layer 1 infrastructure aligns with its mission, to accelerate the global movement of money, using stablecoin as a core payment rail, and making it accessible to businesses worldwide.
Firms looking to remain relevant within this fast-paced ecosystem must progressively revamp their range of services while offering much-needed solutions. Such adjustments become even more critical amid the push for better stablecoin regulations as concerned authorities advocate for better compliance.
EU Braces For MiCA Framework
The EU markets are only three days away from the Markets in Crypto Assets (MiCA) framework, which is expected to disrupt stablecoin activity. MiCA went into partial effect in June 2023 and was scheduled to come into full effect by the end of 2024. MiCA has gathered a lot of attention as it approaches a key deadline on June 30.
Many stablecoins currently operate in a regulatory grey area, with unclear guidelines on how they should be classified and supervised. Other challenges include a lack of consensus among exchanges, causing regulatory concerns regarding compliance with AML and KYC regulations.
Industry giants like Binance and Bitstamp have already made compliance adjustments in the EU, a move that brought relief to many crypto users in the bloc. For Binance, the adjustment involved limiting unregulated stablecoins for EU users. Kraken exchange is also considering dropping USDT in the EU ahead of expected changes.
“MiCA places stricter regulatory requirements on fiat-backed stablecoins and e-money tokens that have cross a predetermined adoption threshold,” wrote Kim.
Read more: What Is Markets in Crypto-Assets (MiCA)?
With the new framework coming in, only stablecoins that satisfy guidelines would be able to trade in the EU. This is as MiCA looks to provide a clear regulatory structure, ensuring total compliance with existing laws and regulations.
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