Canadian cryptocurrency payments company Banxa (Banxa Stock Quote, Charts, News, Analysts, Financials TSXV:BNXA) took a big step on Tuesday with the launch of its sell function for end users in Euros, British pounds and Australian dollars. According to the company, allowing users to now buy and sell cryptocurrencies through Banxa’s platform and convert them to and from fiat currency will “close the loop” for customers while opening up a new revenue channel.
“This product upgrade is a critical piece of our roadmap,” said Banxa CEO Holger Arians in a press release. “It is our goal to continue to bring new payment methods and services to our partners and end users. This is in line with our vision of global reach and local presence. I’m proud of the work done by our technology and compliance teams to ensure that our Payments and Reg-Tech platform is market leading.”
Banxa, a Melbourne, Australia-headquartered company that began trading on the TSX Venture earlier this year, is a payments service provider for the digital asset space. Banxa’s platform gives cryptocurrency companies the ability to process users’ transactions, with Banxa’s clients now including crypto exchanges like Binance, Ledger and Gate.io.
So far, the currently $128-million market cap BNXA has seen its share price bounce around quite a bit, going from an initial $0.90 in January to as high as $8.19 by mid-March. The stock has fallen off since then and is currently trading around the $3.00 mark.
Last month, Banxa delivered its fiscal year end update, showing AUD$687 million AUD in total transaction value, a huge leap over last year’s AUD$91million. Revenue for the fiscal year ended June 30 was expected to be between AUD$42 and AUD$45 with an expected adjusted EBITDA loss of AUD$1 million.
The company reported growing its B2B customer base from 48 to 66 since the start of 2021 and now has cryptocurrency compliances and licenses in Canada, Australia, Netherlands, Lithuania and through a partnership in the United States. As far as the cryptocurrencies go, last month Banxa added 17 new coins to its payment processing platform, including AAVE, Dogecoin, Enjin Coin, CELO, Avalanche, Compound and MATIC/Polygon. Operationally, the business has grown, as well, going from a staff of 38 at the start of the year to now almost 150, according to a September 7 report.
“As more people transition from the existing fiat world (e.g. USD/EUR/CAD) to the digital asset world (e.g. Bitcoin/Ethereum) the requirement for compliant payment infrastructure becomes increasingly more important. Banxa addresses this head on with the provision of both global and local payment methods for our customers,” said Domenic Carosa, Banxa Founder and Chairman, in the company’s fiscal 2021 year end press release on August 19.
“As the industry becomes increasingly regulated, Banxa is leading the charge with its RegTech offering that provides regulated and compliant payments to the industry. We will continue to acquire more licences for cryptocurrency payments, exchange and custodial services around the world therefore building a defensible ‘moat’ around our business model,” Carosa said.
Disclosure: Banxa is an annual sponsor of Cantech Letter.