Animoca Brands co-founder and executive chairman Yat Siu sees significant potential in the personalization of Web3-based services as his firm earmarks $30 million to neobank platform hi.
Siu’s investment firm plans to invest into the Web3 app that combines a cryptocurrency exchange, digital banking services and a customizable NFT-styled crypto debit card offering as part of its growing ecosystem.
Speaking exclusively to Cointelegraph, Siu said that hi’s vision for their NFT debit card offering intersects with his own views on the interplays of culture and Web3. hi’s flagship crypto-friendly Mastercard debit card allows users to personalize their physical cards with an NFT avatar which they verifiably own.
“It is an example of the ongoing shift towards personalization, where Web3 finally allows users the opportunity to express themselves and their individuality in new and exciting ways.”
A central feature of the agreement is the potential to amplify the utility of various Web3 tokens and nonfungible tokens (NFTs). The hi ecosystem features Web3-integrated financial application as well as its own hi protocol, which is an EVM compatible sidechain for Ethereum.
The two companies will also look to drive the adoption of a “unique-human authentication mechanism”, in reference to the hi protocol’s proof of human identity solution.
Related: Animoca still bullish on blockchain games, awaits license for metaverse fund
Sean Rac, hi co-founder, told Cointelegraph that the protocol’s proof of human identity solution looks to address shortcomings of the “Web2” era where a handful of companies gained control over user data and identity after establishing themselves as “dominant credential providers”.
According to Rac, hi’s solution addresses this by using a dual-bode structure where one set of nodes serve as identity validators that are responsible for verifying accounts are actually owned by humans. Meanwhile block producers secure the network.
Rac added that the approach could open up possibilities for “human-only” networks and decentralized applications.
Animoca Brands and @hi_com_official
We entered into a MoU for partnership to support hi’s dedicated work in bridging fiat & cryptocurrency worlds to onboard #Web3 to mass, creating real-world use cases for utility tokens like $SAND, $EDU, $APE & more! https://t.co/i5qOjMluPv
— Animoca Brands (@animocabrands) July 27, 2023
The partnership will also allow users to spend and receive Animoca Web3 ecosystem tokens, including the Sandbox’s SAND and Bored Ape Yacht Club ecosystem’s APE tokens. The Web3 app is touted to have over 3.5 million users.
The card service is set to allow users to pay with a fiat or crypto debit card around the world, tapping into some 90 million merchants that make use of the Mastercards services.
The platform looks to move into a space that has been shaped by neobanks like Revolut, while its focus on Web3 might attract proponents and enthusiasts to get onboard, even if its just to have a debit card to flaunt their prized BAYC, Meebit or Pudgy Penguin NFTs.
Siu added that the investment was driven by the belief that hi would bring a new set of users to Web3 as well as Animoca’s own properties like The Sandbox.
“We believe that hi’s core application will facilitate on- and off-ramp rails and therefore further drive mass adoption.”
There could also be significant value in the deal for Animoca, which has invested in a number of different NFT and Web3 projects, platforms and NFTs collections. Siu also noted investment would begin once definitive agreements have been signed off by both parties.
The neobank has secured the green light as a virtual asset service provider (VASP) in Lithuania, while it’s also recognized as a virtual currency operator by Italy’s payments service regulator. hi’s presence in Asia is in progress, with the platform undergoing pre-registration to secure a VASP license through the Hong Kong Securities and Futures Commission.
Earlier this month, Siu told Cointelegraph that Animoca was still awaiting a regulatory license in Hong Kong for its proposed $1 billion Metaverse fund. The company continues to invest heavily in blockchain gaming and Web3 projects.
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