OpenFi, short for "Open Finance," is a financial framework that integrates traditional finance (TradFi) with decentralized finance (DeFi).
One of OpenFi's main features is that anyone can innovate without needing permission. This open approach lets new entrepreneurs compete with big companies, leading to better services and lower costs. Users benefit from a growing range of financial products offering improved features, lower fees, and better experiences.
OpenFi draws inspiration from the principles of Open Banking, which emphasizes transparency and customer control over financial data. However, due to slow adoption by banks, consumer trust issues, fragmented implementations, and regulatory and technical challenges, Open Banking has yet to fully realize its goals. OpenFi builds on these principles by adding DeFi innovations and giving users more control.
A significant development in OpenFi is the emergence of onchain crypto cards (or self-custodial crypto cards), which allow users to pay for everyday items with crypto while merchants receive payments in fiat currency. Unlike CeDeFi crypto cards—which are traditional payment cards with fiat balances topped up from crypto—onchain crypto cards directly use onchain assets. This enables users to spend directly from their self-custodial accounts, eliminating the need for centralized custodians and adhering to decentralization principles.
OpenFi has the potential to transform how people use cryptocurrencies, moving beyond speculative trading to practical, real-world applications. This shift shows that crypto is maturing, focusing on real value for users and creating solutions for actual financial needs. By making digital assets useful for daily transactions and integrating them seamlessly into financial lives, OpenFi helps people leverage the benefits of blockchain technology without the complexities traditionally associated with crypto. This evolution means the crypto space is maturing, concentrating on giving users real benefits and fostering innovation that addresses actual financial needs.
Author: Hannes Graah, Founder and Builder of Zeal
Hannes Graah is the Founder and Builder of Zeal, the digital wallet designed for your entire financial life. Having previously worked as VP of Growth at Revolut, Hannes has a deep understanding of building user-friendly financial tools. Additionally, an eight-year tenure at Spotify bolstered his expertise in scaling operations and managing diverse growth initiatives. Hannes is equipped with an entrepreneurial mindset and a strong ability to scale company operations and assorted growth projects.
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