Eco Shifts Focus from Custodial to Non-Custodial Crypto Solutions
Eco, a fintech wallet app built on top of cryptocurrency, is making a significant pivot in its business strategy. The company, currently offering a custodial solution, has decided to shift its focus towards self-custody and put more emphasis on its non-custodial Beam wallet.
According to CEO Andy Bromberg, building custodial crypto products no longer makes sense. Eco is a consumer-focused product available only in the U.S., and the country’s strict regulatory environment for custodial products has become challenging. Bromberg cited Coinbase’s lawsuit and Revolut shutting down its crypto features as examples of the U.S.’s anti-crypto approach.
Bromberg highlighted the difficulties faced by custodial platforms in the current environment, including FTX’s collapse. As a result, Eco plans to gradually phase out custodial options and deprecate certain features.
The Rise of Beam Wallet
Eco’s unexpected decision will benefit its Beam wallet, which was launched in late July. Although Beam has a Web2 interface, it utilizes Web3 technology underneath. The wallet leverages Ethereum’s account abstraction upgrade and operates on layer-2 rollup Optimism.
In addition to Optimism, Beam also taps into Coinbase’s Base network. Bromberg believes that Coinbase shares the same vision for a true crypto future. Since its launch, Beam has gained significant traction with 80,000 users in the first two months. The wallet has seen impressive organic growth in Indonesia, Nigeria, and Vietnam.
The Vision for Crypto
Bromberg sees the technology behind Beam as the key to realizing the future of cryptocurrency. Supported by heavyweight investors like Andreessen Horowitz and Kevin Durant, Bromberg is confident in the company’s decision to focus on non-custodial solutions. He believes that the original vision of crypto can be achieved this year.
Eco’s ultimate goal is not to become a traditional fiat-based bank. Instead, they aim to contribute to a decentralized currency ecosystem with their own Eco currency. Bromberg urges the industry to “wake up” and embrace this vision. He concludes by stating that if the future is custodial, then they have failed.
Hot Take: Embracing Non-Custodial Solutions for Crypto Success
Eco’s shift from custodial to non-custodial crypto solutions reflects the growing challenges faced by custodial platforms in the U.S. regulatory landscape. By focusing on their Beam wallet, which leverages Web3 technology and operates on layer-2 rollup Optimism, Eco aims to build a true crypto future.
The decision has been supported by investors and driven by the belief that decentralized currencies hold the key to success in the industry. With impressive user growth in emerging markets, Eco is positioning itself as a leader in non-custodial solutions. By embracing this approach, Eco hopes to wake up the rest of the industry and pave the way for a decentralized future.
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