IOSG says fintech firms are using crypto as financial infrastructure

Global fintech companies are increasingly using cryptocurrencies as core infrastructure for payments, settlement and financial services rather than simply as investment assets, crypto investment firm IOSG said in a report. Comparing the business strategies of major fintech companies including Visa, Mastercard, Stripe, PayPal and Robinhood, the report said stablecoins are emerging as a key tool linking traditional finance with blockchain-based finance. IOSG added that securing competitiveness in future financial markets will require a large user base, regulatory compliance capabilities and control over financial infrastructure. The report also projected that DeFi is more likely to be used as infrastructure supporting existing financial products than as a service used directly by mainstream consumers.