Scallop is a new banking-as-a-service provider that aims to streamline the way individuals and businesses manage both their cryptocurrencies and fiat currencies through a range of novel products and services. The platform is designed to dissolve the boundaries between the worlds of traditional and decentralized finance through a powerful combined fiat/crypto account — which is supplemented by a variety of banking products (more on these later).
The overall goal of the platform is to make cryptocurrency as accessible as regular currency while allowing users to access the rapidly expanding DeFi landscape just as easily as using their current online banking solution. A team of over forty individuals is behind the platform and includes a range of financial and technology professionals. The development of the solution is headed up by co-founders Raj Bagadi (CEO) and Mindy Bejawn (COO).
The platform features a native utility token, known as the Scallop Token (SCLP), which is mainly used to unlock certain perks and rewards. For example, users will need to stake SCLP tokens in order to open an account with Scallop and unlock benefits like up to 1% crypto back on in-store purchases, deposit bonuses, and fee discounts. The token can also be used to pay for transaction fees, exchange fees, and monthly management fees.
How Does Scallop Work?
Scallop provides a simple, easy-to-use application that can be used to access both traditional and cryptocurrency accounts in one place. It consists of an ecosystem of products that are designed to make cryptocurrencies more accessible, functional, and rewarding.
The Scallop ecosystem will initially be formed of ten products, each of these is briefly summarized below:
- Scallop Earn: Use crypto or fiat to earn a yield using popular DeFi protocols like Compound and Aave.
- Scallop NFT: A built-in NFT marketplace that allows users to buy NFTs with fiat
- The Scallop Token (SCLP): An ERC-20 token used to access various products, features, and rewards.
- Scallop Chain: A native blockchain used to host the Scallop product suite, and eventually the SCLP token.
- Scallop Banking Accounts: GBP and IBAN accounts with sort codes, account numbers, and integrated DeFi features.
- Scallop Cards: Virtual and physical debit cards linked to fiat/crypto accounts.
- Scallop Exchange: Supporting fiat to crypto conversions (and vice-versa) and direct integration with Uniswap.
- Scallop Hardware Wallet: A proprietary hardware wallet secured by an EAL 6+ certified secure element.
- Scallop Payments: Fiat and crypto payments with support for dozens of major fiat and cryptocurrencies.
- Scallop Pay: Easily pay for goods using cryptocurrency via the Scallop app.
As you can probably tell from the product lineup, Scallop is largely focused on improving the accessibility, security, and utility of cryptocurrencies — while still providing full support for a wide range of fiat currencies. With this, Scallop hopes to make using and spending cryptocurrency just as common as fiat.
Scallop will initially be built on the Ethereum blockchain, but will eventually migrate to a custom-built Scallop Chain — which will support rapid transaction confirmations, low fees, and support for powerful decentralized applications (DApps). Scallop Chain will be made open to anybody looking to develop on it, helping to grow the Scallop network rapidly.
What Makes Scallop Unique?
Scallop introduces what it describes as “the world’s first DeFi powered accounts” — which as their name suggests, are accounts that allow users to access both traditional and decentralized finance.
But more than this, Scallop is building a DeFi hub that allows anybody, irrespective of their knowledge level or experience, to access tools that were previously reserved for only those intimately familiar with blockchain technology. With this, Scallop hopes to make cryptocurrencies and other digital assets (including NFTs) more accessible to the masses.
To accomplish this Scallop incorporates a range of distinguishing features that help separate it from the competition and deliver on its goal of making DeFi as popular as TradFi. Some of these include:
Regulated and Licensed
Scallop aims to lead the industry in terms of regulatory compliance and has already obtained a crypto license in the EU and is in the process of getting an EMD license in the UK and an intermediary in the EU. With this, it hopes to improve consumer confidence and appeal to those looking for a regulated intro to the crypto industry.
Native Blockchain
Although Scallop will initially launch some of its products on Ethereum, it eventually plans to migrate its products and token to a native blockchain known as Scallop Chain. This will feature dramatically improved speed and efficiency over Ethereum, improving usability and making it better suited for DeFi applications.
NFT Marketplace
One of the platform’s stand-out features is its integrated NFT marketplace, which allows users to easily view, sort, purchase, and sell a wide range of NFTs. What’s more is that Scallop will be one of the first platforms to support fiat purchases, making it more accessible to casual investors and users.
Cold Storage Support
Scallop separates itself from many other crypto banking solution providers in that it’s non-custodial. Unlike other platforms, users retain full control of their private keys and can freely move their funds in and other of their Scallop wallet with ease. It’s also partnered with Ledger (a popular hardware wallet manufacturer). This partnership will allow users to benefit from secure cold storage of their assets.
