Tezos Foundation Teams Up With Baanx for Non-Custodial Crypto Card

As an analyst with a background in blockchain technology and experience in the crypto industry, I am excited about the latest development between Tezos, Baanx, and Mastercard. The announcement of a Tezos-branded, non-custodial crypto debit card on Etherlink’s Ethereum-compatible layer 2 blockchain is a significant step forward in making cryptocurrencies more accessible and usable in everyday transactions.

In simple terms, Tezos, the blockchain platform for smart contracts that was established by Arthur and Kathleen Breitman in 2017, will be featured on a new cryptocurrency payment debit card. This collaboration is between Tezos and Baanx, a digital assets card provider, which has partnered with Mastercard.

Using the Tezos-labeled, non-custodial crypto card for transactions will occur on Etherlink, a layer-2 Ethereum blockchain powered by Tezos Smart Rollups technology. This setup enables swift and cost-effective payments. Notably, over 110 million merchants worldwide that accept Mastercard will take the Tezos Foundation-supported debit card.

Non-custodial crypto wallets connected to crypto cards are gaining traction among customers, allowing them to retain control of their digital assets until they choose to use them. Reports suggest that Mastercard and Baanx are planning to launch a MetaMask debit card, while DeFi firm 1Inch already has one in operation. Baanx’s partnership with Tezos dates back over four years, and the Tezos Foundation has previously contributed to Baanx’s funding rounds.

Siddhart Singhal, the head of business development at Trilitech – a Tezos development firm, shares that the Tezos Etherlink layer 2 currently achieves sub-second transaction finality in roughly 500 milliseconds, and this speed is expected to improve further within the next few months.

As a crypto investor, I can tell you that I’m excited about the on-chain payment solution we’ve developed. This experience enables users to spend their cryptocurrency balances in a non-custodial way, similar to using Apple Pay or Google Pay. In other words, you have full control over your funds, just like in traditional retail transactions where a debit card is accepted.

According to Simon Jones, Baanx’s chief commercial officer, crypto cards serve multiple purposes. They can function as an alternative to online banking for individuals and those who lack access to traditional financial services. Additionally, they cater to the needs of the creator economy by enabling wallets that distribute payments to users.

In an interview, Jones expressed that there are approximately 1.2 billion individuals lacking financial services access, in addition to those who wish to abandon their traditional banks but require real-world connections. Another application could be for the creator economy, such as a gaming wallet where payments to users are made without returning revenues to intermediaries like Apple. Instead, why not deal directly with consumers?