Onramp Invest wants to offer crypto debit cards to clients

Fintech startup Onramp Invest is planning to provide registered investment advisers access to cryptocurrency cash management products, like debit cards and credit cards, to offer clients. 

Onramp Invest CEO and Co-founder Tyrone Ross said the firm pitched the idea of crypto cash management products for RIAs to Visa Inc. and, in turn, Visa invited Onramp to join its Fintech Fast Track program. The program, designed for innovations in payments, gives Onramp access to Visa’s full suite of technology, resources and partners to expand its footprint. 

“We explained to [Visa] that cash management in the RIA space now kind of sucks, RIAs are not really getting clients anything,” Ross said. “There’s an option for us to offer credit cards and or debit cards for advisers who can offer that to clients to get Bitcoin rewards or cashback when they use the cards.” 

Visa is already offering crypto debit cards that are available to consumers through platforms like crypto exchange Coinbase and BlockFi. Crypto debit cards let consumers use crypto for purchases and ATM cash withdrawals. With Visa, consumers can spend crypto anywhere Visa debit cards are accepted as the cryptocurrency is automatically converted to U.S. dollars, according to Coinbase’s website.

The crypto credit card Onramp is envisioning would have Bitcoin or Ethereum rewards, Ross said. "Our credit card would be made available to Onramp clients that use our platform," he said. "Initially it would be a 'white glove offering' and part of our full cash management offering we have planned for RIAs."

However, the bigger picture goal for Onramp is to turn the RIA space into community banks, giving RIAs the same access to banking tools as a wirehouse adviser, Ross said. 

“If you took banking away from a wirehouse adviser they’d lose clients,” he said. “We want to make the RIA space to be its own entity in terms of the ability to move money, trade and interact all within the RIA space. Advisers should never have to leave the RIA space.” 

Moreover, providing access to crypto cash management tools can also nudge more consumers who don’t have financial access toward economic empowerment, Ross said. 

“Take this new age asset, put it into this tool that the majority of people need to survive, [advisers] teach them about banking and pull them into the financial system,” he said. “Here's a great way to push the industry forward with tools and resources starting with a damn debit card.” 

The partnership with Visa was announced just a couple weeks after Onramp made the debut of its highly anticipated cryptocurrency asset management platform. 

Onramp’s push to ease advisers into crypto comes amid a volatile crypto market that has historically kept financial advisers on the sidelines. Bitcoin’s meteoric rise and subsequent downward spiral this year has undoubtedly shaken the wealth management industry. 

Yet, embracing crypto as an investment vehicle for clients throughout the next year is on the rise, with more than a quarter (26%) of advisers indicating that they plan to increase their use or recommendation of cryptocurrencies over the next 12 months, according to the Financial Planning Association’s 2021 Trends in Investing Survey.

Even lawmakers are attempting to warm up to the idea of cryptocurrency via a central bank digital currency.

Despite digital currency from central banks having “great promise” to improve financial inclusion, efficiency and the safety of the financial system, lawmakers are still struggling to look beyond the potential threats around digital currencies, said Senator Elizabeth Warren (D-Mass.) on Wednesday at a congressional hearing.