A crypto firm based in Switzerland says demand is increasing for crypto products, including blockchain technology and affiliated products. According to XEROF, in a report covering the first 6 months of 2023, transaction service demand has experienced “extreme growth” in volumes, specifically for crypto to fiat and payment services.
XEROF is regulated as a Virtual Asset Service provider (VASP) and supervised by the Financial Services Standards Association (VQF). Services are offered in compliance with Switzerland’s AML/CFT regulations. The company works with family offices, HNW individuals, exchanges, and other corporations.
XEROF reports that there is increased demand for transactions between cryptoassets and the US dollar, Euro, pound sterling, and United Arab Emirates dirham. Over 2023, XEROF predicts a 5X increase in cryptoasset payments issued, with transactions both originating in cryptoassets and being transferred into cryptoassets for final settlement.
XEROF did not provide actual numbers on the transactions, making it difficult to understand the actual quantity of the reported demand.
Marc Taverner, XEROF CEO and co-founder, said the demand has been driven by the speed of the transaction, as traditional global payments using other systems may take up to a week. XEROF’s services take a couple of hours.
The company also reported a “surge” in new clients, with its client base jumping by 40%.
From January 1, 2023, to the present, XEROR states that it has seen its banking partnerships grow 500%, now inclusive of global partners as well as Switzerland’s top private banks.
“The emergence of proper licensing for cryptoasset companies, as well as demand from their customer base, is leading modern-thinking banks to expand their digital currency services. Their deep liquidity, paired with our payment rails, allows their customers to move across different asset classes easily.”
XEROF explains that in the early days of its service, it mainly provided payments for luxury goods, such as property, in digital currencies.
By transferring to fiat directly with XEROF, their customers could avoid slippage in digital currency rates and other frictions & fees charged by exchanges and banks.
Today, XEROf still facilitates large global purchases with cryptoassets, but now, one of the most popular purchases is the cryptoasset itself. Family offices and other institutional investors are using XEROF’s OTC desk to move into digital currency positions and diversify their portfolios.