Crypto-native platforms need on-ramps to grow and leap forward

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Crypto was once a self-sufficient industry. The average user only heard about it around the time when the Bitcoin (BTC) price was at its peak and was reluctant to invest in this new asset class. Those passionate about crypto have found their way with limited options to convert their digital money into fiat and cashbacks.

But those days are gone. As crypto products grow in popularity, many platforms previously limited entirely to web3 are integrating fiat bridges to open their doors to new users.

Outage that does not benefit users

Imagine a mainstream web3 product that wants to disrupt its niche and bring its service into the mainstream. He explains his solution and how blockchain is revolutionizing the traditional way of doing business. Then it says: connect your web3 wallet and make sure you have enough Ethereum (ETH) to pay the gas fees. If you don’t have one, open one on a centralized exchange and buy some.

This road is ridiculously long and bumpy for the average non-crypto user. Centralized exchanges are still the most common way to convert fiat money into crypto, but their cumbersome interfaces often leave newcomers feeling dizzy. Even for experienced users, CEXs as a gateway are not always suitable; Withdrawing funds to an external platform requires multiple confirmations and extra fees. All of this creates a lot of friction, making the user’s journey to web3 difficult.

Why would a DEX need a fiat gateway?

It could be argued that web3 projects aiming to be mainstream and blockchain-native platforms that focus mostly on the crypto audience are different, meaning crypto protocols don’t really need fiat. For example, decentralized exchanges that allow enthusiasts to exchange various L1 and L2 tokens earned in airdrops, bounty campaigns, and other activities limited to the blockchain space.

Is this really the case? In practice, this is not the case. Uniswap, for example, introduced its fiat-crypto bridge in December 2022 and has since partnered with various providers to expand opportunities for its users. This is a good example of how a DeFi project understands that it cannot reach the next level without opening a channel to flows from the traditional economy. This move also strengthened the value proposition of the project, providing people with more opportunities to trade securely in a decentralized environment.

Memecoins are another example. As the memecoin craze emerged in 2024, this asset class became more widely known and attracted the attention of traditional investors. While many have turned to centralized exchanges due to lack of other options, Shiba Inu (SHIB) has integrated the memecoin fiat onramp, offering users the ability to purchase the token directly into their wallets. Investors gained an easy way to purchase the asset, and the project increased the value and utility of the token.

Efforts to integrate entry and exit ramps of top crypto platforms are driving user demand to the fore. However, they also state that the infrastructure for fiat-crypto bridges is now ready. Using pre-built software that supports dozens of countries, payment methods, and national currencies today, on-ramp setup can take just a few days. Good gateways are fully licensed in many regions, saving their customers from compatibility issues.

Some argue that crypto-native platforms don’t actually need fiat bridges because not many people are using them so far. But what if this is the case only because there are very few bridges?

We are constantly thinking about how to make crypto more accessible. But most of the time it doesn’t require us to reinvent the wheel; It’s about removing the friction faced by those who want to use their fiat money in the crypto world. There was a time when the fiat and blockchain spaces barely intersected. However, as they continue to merge, only tighter integration between traditional and digital currencies will facilitate faster adoption of crypto.

Konstantin Vasilenko

Konstantins Vasilenko is the co-founder of Paybis, a pioneering fintech startup that has become a leader in the digital and cryptocurrency exchange business in the Baltic States. Konstantin is a seasoned IT professional with over 20 years of experience covering enterprise IT project management, CRM systems, blockchain technology, digital payments and cryptocurrencies. Before Paybis, Konstantin honed his skills at Accenture. His career reflects his strong commitment to innovation and digital transformation, bridging the gap between traditional finance and the crypto economy.