Residual Token Partners with NextBank to Bring U.S. Institutions to the DeFi Ecosystem
Residual Token, Inc. ($eRSDL) is proud to announce it has entered into a collaboration agreement with NextBank International, Inc. a wholly owned subsidiary of NextPlay Technologies, Inc. (NASDAQ: NXTP) in order to create an U.S. institutional safe harbor in the open ocean of #DeFI. In addition, NextBank will have the opportunity to offer NextBank’s international banking services to Residual Token’s tens of thousands of followers worldwide provided they qualify for and open a standard deposit account with the bank.
Residual Token x NextBank
While ReserveLending+, Residual’s flagship institutional peer-to-peer crypto lending software is self-custodying or non-custodial, the company has focused on allowing creating P2P solutions for U.S.-based, institutional clients. By partnering with NextBank, and only allowing its institutional customers into the safe harbor, the RL+ users can be assured that they are in a safe crypto P2P environment. All users are doxxed and in the unlikely event of default, recourse sought.
All other users of the platform must have a bona fide, U.S. banking relationship in place before onboarding with NextBank. Residual Token also scans and monitors the white-listed institutional wallets as an onboarding step, so that the membership at the wallet level is also curated for the safest customer proposition available. In addition, Residual Token is FinCEN registered, while actively monitoring activity on behalf of the relationship and report based on its standing AML/BSA policies.
With this collaboration agreement, a bridge now forms for U.S.-based companies holding crypto that will allow them to seamlessly move between supplying-and-borrowing on ReserveLending+’s P2P crypto platform and fiat banking with NextBank.
Todd Bonner, Head of NextPlay’s Fintech Division and NextBank’s parent company, stated: “… we see NextBank emerging as a global player with a new vision for international banking and global commerce that integrates with our other divisions, creating strong catalysts for growth over the coming year. In addition to growing traditional banking services, we have applications underway for regulatory licensing approval of new products ranging from insurance to protect the wealth of our banking customers to travel programs that assist customers in financing and insuring vacations. All will utilize blockchain solutions to minimize risk to the bank while accelerating NextPlay’s growing ecosystem of technology platforms.”
NextBank can provide to its customers a comprehensive mobile wallet, which includes (but not be limited to) a debit and credit card infrastructure, and which may come with loyalty programs for credit card issuance, merchant acquiring services and worldwide remittance services.
NextBank operates under a special license that permits banking for customers around the world in multiple currencies. NextBank has recently announced an agreement for members of the ABCC cryptocurrency exchange. Once implemented, crypto exchanges and other digital economy companies and their customers will be able to establish credit card and other accounts with NextBank, where they will be able to bank in fiat (government issued) currencies and easily move between fiat and their crypto assets.
The new joint offering is expected to benefit from the rapidly growing global financial technology market, which is projected to grow at a compound annual growth rate of approximately 25% from 2022 to approximately US$324 billion by 2026, according to a Market Data Forecast.
“U.S. banking for crypto holding companies is an ongoing challenge, with only a few players offering to accept deposits from these underbanked companies,” said Residual Token, Inc. CEO, Howard Krieger. “And where you can bank, large, continuous deposit balances are required.”
The goal of this partnership is to find a banking home for underbanked, U.S.-based, crypto holding companies while offering the higher yielding, crypto utility of a peer-to-peer platform.
About Residual Token, Inc. dba unFederalReserve
In business since 2018, Residual’s team of former bankers, technologists and compliance professionals have been exploring ways to make crypto lending and borrowing markets safer and traditional markets more efficient. They currently have in development a handful of blockchain-based software available for license. Its flagship product, ReserveLending, allows permissionless access to crypto holders so that they can deposit, earn and borrow top digital assets safely, easily and effectively for cash management, hedging or speculative purposes.
About NextBank International, Inc.
Acquired by NextPlay in July, NextBank is an International Financial Entity (IFE) operating under the laws of the Commonwealth of Puerto Rico. NextBank is licensed under Act 273 by the Office of the Commissioner of Financial Institutions (OCIF), and currently offers concierge banking services and lending products to successful entrepreneurs and companies. For more information visit https://next.bank/.
About NextPlay Technologies
NextPlay Technologies, Inc. (Nasdaq: NXTP), parent to NextFintech, is a technology solutions company offering games, in-game advertising, crypto-banking, connected TV and travel booking services to consumers and corporations within a growing worldwide digital ecosystem. NextPlay’s engaging products and services utilize innovative AdTech, Artificial Intelligence and Fintech solutions to leverage the strengths and channels of its existing and acquired technologies. For more information about NextPlay Technologies, visit www.NextPlayTechnologies.com and follow us on Twitter @NextPlayTech and LinkedIn.
This press release includes “forward-looking statements” within the meaning of, and within the safe harbor provided by the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements give our current expectations, opinions, belief or forecasts of future events and performance. A statement identified by the use of forward-looking words including “will,” “may,” “expects,” “projects,” “anticipates,” “plans,” “believes,” “estimate,” “should,” and certain of the other foregoing statements may be deemed forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release. Factors that may cause such a difference include risks and uncertainties related to our need for additional capital which may not be available on commercially acceptable terms, if at all, which raises questions about our ability to continue as a going concern; the fact that the COVID-19 pandemic has had, and is expected to continue to have, a significant material adverse impact on the travel industry and our business, operating results and liquidity; amounts owed to us by third parties which may not be paid timely, if at all; certain amounts we owe under outstanding indebtedness which are secured by substantially all of our assets and penalties we may incur in connection therewith; the fact that we have significant indebtedness, which could adversely affect our business and financial condition; uncertainty and illiquidity in credit and capital markets which may impair our ability to obtain credit and financing on acceptable terms and may adversely affect the financial strength of our business partners; the officers and directors of the Company have the ability to exercise significant influence over the Company; stockholders may be diluted significantly through our efforts to obtain financing, satisfy obligations and complete acquisitions through the issuance of additional shares of our common or preferred stock; if we are unable to adapt to changes in technology, our business could be harmed; if we do not adequately protect our intellectual property, our ability to compete could be impaired; our long-term travel business success depends, in part, on our ability to expand our property owner, manager and traveler bases outside of the United States and, as a result, our travel business is susceptible to risks associated with international operations; unfavorable changes in, or interpretations of, government regulations or taxation of the evolving ALR, Internet and e-commerce industries which could harm our operating results; risks associated with the operations of, the business of, and the regulation of, Longroot and NextBank (formerly IFEB); the market in which we participate being highly competitive, and because of that we may be unable to compete successfully with our current or future competitors; our potential inability to adapt to changes in technology, which could harm our business; the volatility of our stock price; risks associated with the integration of the operations of HotPlay Enterprise Limited, which acquisition we recently competed; the fact that we may be subject to liability for the activities of our property owners and managers, which could harm our reputation and increase our operating costs; and that we have incurred significant losses to date and require additional capital which may not be available on commercially acceptable terms, if at all. More information about the risks and uncertainties faced by the Company are detailed from time to time in the Company’s periodic reports filed with the SEC, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, under the headings “Risk Factors”. These reports are available at www.sec.gov. Other unknown or unpredictable factors also could have material adverse effects on the Company’s future results and/or could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made only as of the date hereof. The Company takes no obligation to update or correct its own forward-looking statements, except as required by law, or those prepared by third parties that are not paid for by the Company. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.