Crypto as a Service (CaaS): Key Benefits, Providers, and Use Cases

The relationship between banks and cryptocurrency is evolving rapidly as financial institutions increasingly integrate digital assets into their offerings to remain competitive. This shift underscores the undeniable rise in crypto’s popularity — roughly 562 million people now own digital currencies, an increase of 142 million from 2023. 

For many businesses, however, developing crypto solutions from scratch presents significant challenges due to limited bandwidth or technical resources. This is where the crypto-as-a-service (CaaS) model comes in. CaaS allows businesses to seamlessly incorporate crypto services into their platforms without the complexities of in-house exchange software development. 

In this guide, we take an in-depth look at CaaS, exploring its key benefits and practical use cases to help you determine if it’s worthwhile for your business. 

Understanding Crypto as a Service

CaaS enables businesses to launch crypto services without the need to develop their own platforms. By partnering with a white-label provider like AlphaPoint, businesses can deliver a full suite of digital asset solutions under their own brand.

For example, imagine you run a credit union or other financial institution and want to capitalize on the growing crypto market by allowing your customers to hold Bitcoin and Ethereum through a secure crypto wallet.

However, you don’t want to spend significant company resources to build a proprietary crypto wallet across a blockchain network. Instead of undertaking this complex task, you can partner with a white-label provider who licenses its technology to you.

This approach allows you to deliver a fully operational digital assets platform to your customers, saving valuable time and resources while still meeting market demand.

Alphapoint’s CaaS solution is built on our proven exchange software, with the key difference being its deployment model. CaaS allows businesses to launch faster and at a lower cost by providing pre-integrated features, such as trading engines and digital wallets, within the infrastructure. 

To learn how AlphaPoint’s CaaS infrastructure can help your business streamline crypto services, download our eBook, Crypto-Powered Growth: How Fintechs and Brokers Are Enhancing Revenue and Retention with Crypto-as-a-Service (CaaS). 

Types of CaaS Services

Offering a range of CaaS services allows businesses to diversify their revenue streams and meet the growing demand for cryptocurrency solutions. Key services include:

Crypto Trading

Crypto trading is a cornerstone of most CaaS offerings, making it one of the simplest services to implement. A recent survey revealed that 43% of respondents plan to purchase crypto within the next year. By offering a trading platform, businesses can attract this growing audience and position themselves as a trusted provider in the expanding crypto market.

Crypto Wallets

Crypto banking software providers can offer access to white-label crypto wallets, enabling businesses to extend this essential service to their customers. A crypto wallet CaaS solution allows users to securely receive, send, and store digital assets within your platform, enhancing their convenience and trust in your services. 

Offering crypto wallets is a strategic way to increase user retention. By providing a seamless and secure digital asset management experience, businesses can strengthen customer loyalty and differentiate themselves in the competitive crypto market. 

Crypto Custody

Crypto custody involves securely storing large amounts of cryptocurrencies on behalf of institutions or high-value retail customers. This service provides robust security solutions, giving clients peace of mind while also unlocking new revenue-generating opportunities for your business. 

By providing custody solutions, you can attract investors who may prefer not to manage assets themselves. This expands your customer base and enables you to generate additional income through custody fees. When combined with trading fees, custody services can significantly boost your profit margins while positioning your business as a reliable partner in the digital asset ecosystem. 

Liquidity

Liquidity ensures that traders can buy and sell cryptocurrencies at stable prices with minimal delays. Without sufficient liquidity, transactions can become inefficient, leading to significant price swings that expose users to higher risks and discourage trading activity. 

As part of a CaaS offering, liquidity solutions are crucial for creating a reliable and efficient trading environment. They allow users to execute trades quickly, building trust and loyalty. For businesses, managing liquidity effectively can lead to increased transaction volumes, generating more revenue through trading fees while maintaining a competitive edge in the market. 

How Crypto as a Service Works

There are a variety of different white-label CaaS providers to choose from, each with unique procedures. Here’s how the onboard process works when you pick AlphaPoint as your fintech service provider:

1. A financial institution signs up for a white-label CaaS service plan from a provider using AlphaPoint’s technology.
2. The AlphaPoint Exchange (APEX) gives the financial institution access to its exchange software and liquidity solutions (all provided transparently by AlphaPoint Certified Partners for integration into the financial institution‘s own APEX-powered exchange platform).
3. The financial institution integrates AlphaPoint’s APIs (and possibly UI assets) into its own platform.
4. The financial institution launches the crypto service or product for its customers.

 

With APIs, financial institutions can integrate AlphaPoint’s technology with their own systems. This establishes a seamless transfer of AlphaPoint’s CaaS technology to your platform — no time-consuming configuration to your platform’s back-end required.

Key Benefits of CaaS

CaaS offers a wide range of benefits for businesses looking to dive into the crypto market. Streamlining access to essential infrastructure and services allows companies to enter the space efficiently while minimizing risks and costs. Here are some of the key advantages:

Ease of Entry into Crypto Offerings

CaaS significantly lowers the barrier for businesses to enter the crypto market by providing ready-to-deploy solutions. Instead of building in-house infrastructure from scratch — a process that requires extensive resources and expertise — businesses can leverage fully functional software from CaaS providers. These solutions are pre-configured and only need minimal customization to align with a company’s unique requirements, enabling faster and more efficient market entry.  

Reduced Development and Maintenance Costs

Building a crypto infrastructure from the ground up is a significant investment, with costs often starting at $400,000. Beyond the initial development, ongoing expenses for regular security checks, compliance audits, and platform upgrades can quickly add up, making it a challenging endeavor for startups, small businesses, and even large enterprises.

CaaS provides a cost-effective alternative by outsourcing the complexities of infrastructure development and maintenance. By partnering with a CaaS provider, businesses can sidestep the substantial financial and operational burden of building their own solutions. From design and testing to upgrades and security, the provider handles these critical tasks, allowing businesses to focus on growth and customer engagement instead. 

Quicker Speed to Market

CaaS allows businesses to launch their crypto offerings in weeks, a dramatic reduction compared to the months — or even years — required for in-house development. Pre-built features such as wallets, order books, and matching engines come standard with many CaaS solutions, streamlining the deployment process.

This accelerated timeline not only minimizes the opportunity cost of delayed market entry but also allows businesses to start generating revenue sooner.

Industry Expertise

CaaS providers have the expertise and experience to help businesses implement crypto products and services quickly and securely.

If you’re not familiar with the crypto market and want to launch a new service, it’s smart to rely on a company with an established crypto infrastructure, like AlphaPoint. 

With 10+ years of experience since our founding in 2013, AlphaPoint has pioneered the belief that crypto will transform fintech and finance services in general — and we remain at the forefront of innovation. With AlphaPoint’s expertise on your side, you can avoid the costs of starting an ill-prepared crypto development project on your own.

Improved Security and Compliance

Operating in the crypto market requires adherence to complex regulatory requirements, which can be resource-intensive.

CaaS simplifies this challenge by providing built-in security measures and compliance tools, such as KYC and AML protocols, tailored to meet these standards. Your CaaS provider handles the heavy lifting, ensuring your platform remains secure and compliant so you can focus on growing your business.

Maximized Earning Potential

CaaS allows businesses to expand their profit margins by unlocking new revenue streams. Through this business model, companies can generate income from trading fees, custodial services, and other crypto-related offerings — all without the significant investment required to build and maintain an exchange from scratch.  

Use Cases for CaaS

CaaS offers transformative potential across various industries by simplifying access to cryptocurrency services. Below are some of the most impactful use cases. 

You can get even more ideas from our eBook, Crypto-Powered Growth: How Fintechs and Brokers Are Enhancing Revenue and Retention with Crypto-as-a-Service (CaaS). 

1. Banks, Credit Unions, and Other Financial Institutions

Financial institutions, including banks and investment firms, can leverage CaaS to provide crypto services, enhancing their product portfolio and meeting the growing demand for digital assets.

By integrating services such as regulated crypto trading, secure custody services, and diversified investment vehicles, these organizations can enhance their offerings and attract new customers. 

Given the stringent regulatory environment of the financial sector, institutions must collaborate with providers that ensure full compliance. AlphaPoint offers KYC (Know Your Customer) and AML (Anti-Money Laundering) features, simplifying adherence to regulatory standards.

2. Remittance Companies

Remittance companies stand to gain significant advantages from CaaS. By facilitating faster, cost-effective cross-border crypto transactions, CaaS eliminates the need for third parties, allowing these companies to reach broader audiences. 

The efficiency and low-cost nature of crypto services can be particularly appealing to customers who make frequent cross-border payments or live in regions burdened by high remittance fees. Additionally, CaaS helps remittance companies to serve unbanked populations, fostering greater financial inclusion and opening new market opportunities. 

3. Payments

Ecommerce brands are increasingly utilizing CaaS solutions to stay ahead in a competitive market. By integrating crypto payments, businesses can accept digital currencies, secure transactions, and even offer loyalty rewards in the form of digital assets. 

As the adoption of cryptocurrencies in everyday payments continues to grow — particularly among tech-savvy customers — expanding payment options to include crypto is a strategic move. This not only attracts a broader audience but helps ecommerce brands differentiate themselves as innovative and customer-focused leaders in their space. 

Find Out How AlphaPoint Provides CaaS Today

Crypto-as-a-service is transforming how businesses enter the cryptocurrency ecosystem. By enabling companies to offer crypto services without developing their own infrastructure, CaaS meets the growing demand for alternative investment vehicles and payment methods. 

If your goal is to attract more users, retain loyal customers, and boost your profit margins, CaaS offers a compelling solution worth exploring. 

AlphaPoint’s CaaS platform provides access to a robust infrastructure that has registered over a trillion dollars in trading volume. With our platform, you can launch crypto offerings within weeks, allowing you to concentrate on customer relationships while we manage the technical complexities.

Ready to explore the cryptocurrency market? Contact AlphaPoint today to learn how our CaaS solution can support your business objectives!