Strike, a digital payments platform specializing in Bitcoin transactions, has completed the transition of its customer assets from third-party custody to its infrastructure. It took two years for the company to complete the transition. The move is aimed at reducing counterparty risk while enhancing the performance and reliability of Strike’s services. Strike now has the infrastructure to custody both Bitcoin and U.S. Dollars without using a third-party custodian.
This move was announced by Jack Mallers, Strikes’ CEO and co-founder.
Why did Strike decide to bring Bitcoin and Dollar Custody In-house?
The payment solution company’s decision to move its Bitcoin and U.S. Dollar custody in-house came in the wake of a bankruptcy rumor surrounding Prime Trust, its former custodian. Strike did not comment on this possible reason and insisted that self-custody has always been part of their plans.
Strikes’ move to have direct custody of BTC and fiat assets has eliminated the need for intermediaries between the company and its customers. Strike having the capacity to store customer’s Bitcoin, assures users that they will not be affected by issues that could affect a third-party custodian. The crypto and finance industry knows too well that custodians facing liquidity will find it hard to return client assets. An example would be when Gemini’s ongoing issue with Genesis, wherein the former cannot withdraw assets that are under Genesis’ custody.
Added Benefits for Users
Stike’s updated infrastructure has given users several new features and capabilities.
- Users now have the capability to send BTC directly to others via peer-to-peer (p2p) transactions.
- Users can now choose to receive funds or payments in cash or Bitcoin, with the option to make the payments on-chain or through the Lightning Network. The Bitcoin Lightning network is a payment system designed to facilitate faster and cheaper transactions.
- Strike has also increased deposit limits
- The payment platform now supports tiered-on chain payments for both cash and Bitcoin transactions. Priority transactions would take approximately 10 minutes to complete and are the most expensive. Standard transactions would take about an hour but are less expensive. Flexible transactions are free but will take about 12 hours to complete.
Bitcoin Adoption One Payment at a Time
Bitcoin was created by Satoshi as an alternative to the traditional financial system. It aims to put financial power in the hands of the common person. However, a lot of potential users are still hesitating. Users are sometimes hesitant to try new things once they get accustomed to something that works just fine. But it is a good thing that Strike is trying to bring Bitcoin to the ordinary consumer.
Strikes’ services are easy and simple enough to understand. A person who knows his way around a smartphone can probably navigate Strike’s interface easily.
It is also good to know that Bitcoin and cash are held by the platform itself. This eliminates the risk associated with third-party custodians. The option to use the Bitcoin chain or the Lightning Network also gives users a choice. Choosing the Lightning Network allows for faster and cheaper transactions, which is important for any payment transaction.
Companies like Strike, understand that Bitcoin adoption will only happen when people use it in their everyday lives. And they are encouraging adoption one payment at a time.
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