Do I want to become a middleman, or why not a non-custodian with much more service to the whole world?

This introduction is only for you to open your eye to a new area of financial service, the author is Frode van der Laak please message him, fight with him and argue with him if you feel this is wrong, or message him for more informations.

The crashes and why this will continue for many years

We have seen a lot of crashes over years based on middlemen and lack of transparency, like Bernie Madoff, Terra Crash, Celsius, FTX, Sparebank 1 SMN and many traditional banks for example Wirecard.

The reasons for the crash are not about crypto or banks, this is purely about middlemen and the importance of transparency, as all of them control your assets.

Why take the risk to become a centralised entity?

Starting a centralized cryptocurrency exchange can be a complex and highly competitive process.

However, starting a centralized exchange also comes with significant regulatory requirements, and you must comply with various laws and regulations to ensure the safety and security of your exchange. Additionally, as a centralized exchange, you must also ensure the security of user funds and protect against hacking and other security risks.

Starting a bank can be a complex and highly regulated process, and it is not necessarily a good fit for everyone. It requires significant resources, including financial capital, legal expertise, and a strong management team with experience in banking and finance.

However, starting a bank comes with significant regulatory requirements, and you must comply with various laws and regulations to ensure the safety and soundness of your institution. If you are considering starting a bank, it is important to work with experienced professionals to navigate the regulatory process and ensure that you are setting up a sustainable and profitable institution. For many traditional banks and financial institutions that launch their service, it's hard for them to understand the difference and the importance of these two elementary differences.

Starting a neo-bank

Starting a neobank service is the same regulation you need an EMI to operate, your core banking system is held by a bank and sometimes you only have an API to them, you cant operate outside a region, and sometimes it's 'no milk left to the the calf to survive', the service is lacking and it's not good enough to only provide a free card and a wallet with payment service.

Custodian, what now?

Congratulation you successfully becoming a middleman with your new CEX, Bank or Neobank, and you are now able to bring in customers in a region based on your license, possible the license is pure remittance, pure savings, only prepaid or a full bank where it safeguarded by the central bank, any way you need to be fully licensed to deliver the service in a region because you have full control of the private key for the users.

A custodian is an individual or organization that is responsible for the care, custody, and control of something, typically property or assets. In a financial context, a custodian is a financial institution that holds and safeguards financial assets on behalf of its clients.

In the investment industry, a custodian is a financial institution that holds securities, such as stocks and bonds, and other types of financial assets on behalf of investors. The custodian is responsible for safekeeping the assets, processing transactions, and providing various types of account administration services.

Custodians can be banks, trust companies, or other types of financial institutions. They may also be independent companies that specialize in providing custodial services. Custodians typically charge fees for their services, which can vary depending on the type of assets held, the level of service provided, and other factors.

Custodians play an important role in the financial industry, as they help to ensure the security and integrity of financial assets, which is critical for maintaining investor confidence and the overall stability of the financial system.

When you now send money for your clients to other countries or people you always need to send it to another middleman that takes a part as transaction fee.

Transparency

Transparency is important for both banks and cryptocurrencies for several reasons.

• For banks, transparency is essential for maintaining the trust of customers and investors, and for complying with various regulatory requirements. Banks are entrusted with holding and managing large amounts of money and financial assets, and customers and investors expect banks to be transparent about their financial health, business practices, and risk management strategies. This helps to build trust and confidence in the financial system, which is critical for economic growth and stability.
• For cryptocurrencies, transparency is important because the underlying technology, blockchain, is designed to be transparent and immutable. This means that all transactions and data are recorded on a public ledger that can be viewed by anyone. Transparency is important for ensuring the integrity of the blockchain and the trust of users, who rely on the technology for secure and decentralized transactions.
• Transparency is also important for preventing fraud and illegal activities, such as money laundering and terrorism financing. By providing transparency and visibility into transactions and financial activities, banks and cryptocurrencies can help to prevent and detect fraudulent and criminal activities.
• In addition, transparency can also promote competition, innovation, and accountability. By being transparent about their business practices, banks and cryptocurrency companies can help to foster innovation and competition in the marketplace and hold themselves accountable for their actions and decisions.

Overall, transparency is a critical component of both the traditional banking system and the emerging cryptocurrency industry and is important for building trust, preventing fraud, and promoting innovation and accountability.

Non-Custodian

Why its matter for the new era of financial service?

With Non-Custodian the users hold the private key and the assets. And you as a new Neobank don't risk losing the assets for anyone, you only need to focus on the service, and suddenly you can broader the network to the global market and the Metaverse.

Non-custodial wallets and services such as Reltime's offer several benefits over custodial ones:

1. Security: Non-custodial wallets and services give you full control over your private keys, which means that only you have access to your funds. This reduces the risk of your funds being stolen or lost due to the hacking of the wallet provider.
2. Privacy: Non-custodial wallets and services often don't require you to provide personal information or identification, which means that you can maintain your anonymity and privacy. Even if users have assets in a Non-Custodian wallet they need to do a full eKYC to access the Web3 ecosystem and the Metaverse, this is for controlling and checking that the users don't use it for criminal service
3. Transparency: Non-custodial wallets and services operate on a blockchain, which means that transactions are transparent and can be verified by anyone.
4. Decentralization: Non-custodial wallets and services are built on decentralized blockchain networks, which means that they are not controlled by any single entity. This reduces the risk of censorship or the imposition of arbitrary rules by a central authority.
5. Access: Non-custodial wallets and services are often available globally, and anyone can access them as long as they have an internet connection.

Conclusion

Your banking service over Web3, Non-Custodian and the Metaverse makes it much easy with the right setup.

With Reltime the overall delivery is massive. You can deliver the service with dApps and Non-Custodian to and from 150 countries also all over the Metaverse.

If your service demand supporting millions of users, you don't pay any license fee for any users or transaction fee.

With non-custodial wallets and services, it offers greater security, privacy, and freedom compared to custodial wallets and services, which makes this a popular choice for entities and enthusiasts who value these benefits and services to be offered. With a non-custodian, you can also hold securities

The barrier of service is now open to a larger population than one single area, like Africa, Latin America, Asia, Europa and the USA with small to zero cost.

Of course, Reltime does eKYC and it's totally transparent this is the essence of service delivery over the Layer 1 Core Banking system and Web3.

And yes we have also a digital license

Reltime doesn't deliver the service to the man in the street, but only through trusted brands and larger communities (with their own brand) that never want to be a bank, but to offer the service to their community to achieve higher ARPU and greater loyalty.

For traditional banks: Yes traditional banks can benefits of integrate Web3 service to broader the service to the market, also outside their region

Welcome to the next-generation banking!