Major decentralized finance (DeFi) player MakerDAO (MKR) partnered with payment processor Simplex to create a fiat on-ramp for its Dai (DAI) decentralized stablecoin.
According to an announcement on Mar. 3, the partnership makes it possible to buy Dai with the credit and debit cards of Simplex’s partner firms. Maker’s business development representative in Europe, Gustav Arentoft, said:
“Having Dai integrated into Simplex is a benefit to current and future users, […] it gives them a straightforward fiat on- and off-ramp with access to the industry’s biggest players.”
MakerDAO is a leading player in the DeFi space and the organization behind the Dai decentralized stablecoin based on a complex system of Ethereum-based smart contracts. As of press time, DeFi data website DeFi Pulse shows that out of the $967.4 million locked in decentralized finance applications $550 million (over 56%) is in MakerDAO’s protocol.
One of many crypto partnerships for Simplex
Simplex is a European Union-licensed financial institution with over 100 partners that support 13 different cryptocurrencies and 19 different fiat currencies. Simplex already supports Bitcoin (BTC), Binance USD (BUSD), Stellar (XLM), Litecoin (LTC), Ether (ETH), XRP, Binance Coin (BNB), Bitcoin Cash (BCH), Tron (TRX), Cosmos (ATOM), DASH and NANO.
In mid-February, cryptocurrency lending startup Celsius Network launched in-app crypto purchases through a partnership with Simplex. The firm also facilitates card payments on cryptocurrency exchanges Binance, OKCoin, KuCoin and OKEx.
A Simplex spokesperson told Cointelegraph that MakerDAO initiated the contract and that many crypto-asset teams are looking to develop an on-ramp distribution network. When asked about the expected effect of the partnership, he said:
“We have seen a dramatic effect on demand and prices with other crypto’s that’s been added to our network. Simplex is becoming a global multi currency on-ramp network.”
The spokesperson added that more cryptocurrency partnerships are coming in the future.
The rise of DeFi solutions
According to DeFi Pulse, the value of the assets locked in decentralized finance applications increased by over 186% compared to one year ago.
While this growth is significant it is still worth noting that the current locked value of $967.4 million is still down over 20% from the mid-February all-time-high of over $1.2 billion.
A recent Cointelegraph analysis shows that DeFi is emerging as a possible alternative to traditional finance.
Major crypto exchange Huobi has jumped on board by announcing the public testnet launch of its open-source blockchain meant to host decentralized finance applications.
Joseph Spezzano received a Masters Degree in computer science from The University of Massachusetts. Joseph has been working as a full-time blockchain programmer for the past 5 years. In his spare time, Joseph enjoys writing for CryptocurrencyInvestments.com and traveling.