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Dharma tackles DeFi from a different angle by supporting debit cards and bank accounts

Feb 12, 2020 | Services

Decentralized finance, or DeFi, is getting a lot of attention in recent months. Dharma wants to position itself as a major player in this regard. 

With a rather unique business model, the company makes earning interest a lot more accessible. 

What is Dharma About?

By positioning itself as the world’s first cryptobank, Dharma has a very bold plan. The company aims to provide all kinds of financial services, but without effectively being a bank. Given the evolution of innovative technologies, that process has become a lot more straightforward in recent years. 

One could also look at Dharma as a cryptocurrency wallet of sorts. Its main focus lies with stablecoins, which are the backbone of DeFi efforts all over the world. These stablecoins can also be used to generate a high interest rate annually. Making this process more accessible to the masses is not an easy feat, but this project has come up with a solution. 

Rather than solely targeting existing cryptocurrency users, Dharma targets everyone with access to basic financial products. It is possible to deposit money through a debit card. While only available to users in the US, this marks an important milestone for the DeFi industry.

Moreover, Dharma users can withdraw funds to their US bank account at any given time. This approach “bypasses’ the process of obtaining cryptocurrency or stablecoins through trading platforms. Whether that is a good thing, remains up for debate. It is certainly an intriguing way to expose more people to what this industry has to offer. 

Core Features and Aspects

In the cryptocurrency world, giving up control of one’s assets needs to be avoided. The Dharma team acknowledges this fact. As such, its Smart Wallet solution is designed to be non-custodial. There are no seed phrases or paper backups for users to take into account. It is designed to “fade into the background”, removing any potential barriers to entry.

For those preferring to use Dai or USD Coin, that option is still there. The introduction of debit cards and bank accounts is not a mandatory option. Owners of Dai or USD Coin can deposit either stablecoin from anywhere in the world and begin earning interest right away. Having multiple options at one’s disposal is always beneficial.

It is also worth noting that Dharma’s platform doesn’t charge any fees. That also means the company isn’t making money through traditional means. Earlier, the team did raise funding from a team of investors to keep this platform going. There is a chance that fees may be introduced at a later date, but for now, that is not yet the case. 

Images courtesy of their respective sources.

Fintoism is not providing financial or investment advice. All content published on this platform is for entertainment and educational purposes only.

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<a href="https://fintoism.com/author/oglock/" target="_self">JP Buntinx</a>

JP Buntinx

JP Buntinx is passionate about cryptocurrencies, fintech, blockchain, and finance. He currently resides in Belgium.

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