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

Baanx has been working with Mastercard to deliver a range of non-custodial crypto card offerings.

Tezos (XTZ) blockchain will now have its name on a crypto payments debit card, thanks to a partnership between Baanx, a digital assets card facilitator and partner of Mastercard, and the Tezos Foundation.

Announced on Tuesday, the Tezos-branded, non-custodial crypto card will have its transactions take place on Etherlink, an Ethereum-compatible layer-2 blockchain powered by Tezos Smart Rollups technology, to enable fast, cheap payments. The Tezos Foundation-backed debit card will be accepted by over 110 million global merchants that accept Mastercard.

Non-custodial crypto cards – which allow customers to keep hold of their crypto until it’s needed – are becoming increasingly popular. Mastercard and Baanx are also rolling out a MetaMask debit card, and DeFi firm 1Inch has one in operation.

Baanx’s relationship with Tezos spans over four years, and the Tezos Foundation has been involved in previous Baanx funding rounds.

The Tezos Etherlink layer 2 currently offers sub-second transaction finality at around 500 milliseconds, which will become faster in the coming months, according to Siddharth Singhal, head of business development at Trilitech, a Tezos developer.

“We have built an on-chain, non custodial payment experience allowing users to spend their on-chain balance in a non-custodial fashion, as you would with any MasterCard,” Singhal told Blockworks in an interview. “So, like Apple Pay, Google Pay, as well as real-life retail scenarios – wherever a debit card is acceptable.”

The logic behind crypto cards includes being a replacement for online banking and helping those who are unbanked or underbanked, according to Simon Jones, Baanx’s chief commercial officer, as well as for the creator economy looking to build wallets that pay out to users.

“As well as the roughly 1.2 billion people who don't have access to financial services, you have those who basically want to bin their bank, but need that real-world connectivity,” Jones told Blockworks in an interview. “Another use would be for the creator economy, where you might be running a gaming wallet, say, and pay out to users, but don't want to hand back revenues to Apple. Why not go directly to the consumer?”

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