Token Advice - #8 📈

What we’re watching in crypto:

Gnosis Pay 🤝 Visa

Last week at EthCC, Gnosis Pay announced its launch of the Gnosis Card, a self-custodial debit card powered by Visa. As a reminder, “self-custody” refers to the ability to own digitally native assets without a third party involved (i.e. I own USDC in my Coinbase Wallet, and no one has access to it but me). The announcement gained quite a bit of traction in crypto native circles and was met with optimism as it looks to fill a substantial hole in terms of self-custody user experience. Here’s the breakdown: The card will go live in the fall, beginning in Europe before being rolled out in the US, India, and Brazil next. There is currently a waitlist to sign up for access. It’ll be accepted at over 80 million Visa merchants worldwide and can be used just as you would use any other Visa card. In short, Gnosis Pay will help continue to knock down barriers between blockchains and the traditional financial world by allowing those who self-custody onchain to spend their crypto in the real world.

Our take:

Self-custody of cryptoassets is still quite niche, but adoption is increasing quickly. Since the FTX collapse last fall, more and more cryptoasset owners are looking for ways to remove counterparty risk and maintain full control of their assets. As we mentioned last week, active users onchain were at all-time highs in June. Not something too many outside of crypto circles would likely expect!

So what are users doing on the blockchain? To name a few things:

• They’re holding assets

• They’re trading assets

• They’re transferring assets

• They’re staking assets

• They’re lending/borrowing assets

What the ecosystem has yet to solve for however, is the ability to easily use assets in a self-custody wallet to pay for goods in the real world. A coffee from Starbucks, a ticket to a basketball game, a new Apple phone. As we all know, at 99% of places we can’t walk up to the counter and ask to pay in crypto. The infrastructure simply doesn’t exist yet.

The Gnosis Card is step one in changing the game here. Let me explain:

Currently, when I want to use cryptoassets from my self-custodial wallet to make a purchase, I have to 1. Send the cryptoasset to my Coinbase Exchange account, 2. Sell the cryptoasset for dollars, 3. Transfer the USD to my checking account, 4. Wait a day for the funds to deliver, 5. Spend the funds. Five steps that take 1-2 days to complete. This UX doesn’t easily allow us to store funds we plan to spend in self-custodial wallets.

With a self-custodial debit card, this five step process will be reduced to one step. There won’t be a need to sell or initiate any transfers, instead Gnosis and Visa will take care of the backend allowing me to spend my self-custodial cryptoassets in real-time around the globe. Although our thesis remains that businesses and consumers will predominantly operate onchain in the future, eliminating the need for a card, it’s undeniable this solution solves a massive gap in the near term.

Own, spend, save, lend, and more all from a single self-custodial wallet. We’re one step closer to having a digital alternative to traditional bank accounts.

Just as the world of crypto is evolving with innovative solutions like the Gnosis Card to bridge the gap between self-custody wallets and real-world spending, individuals are also presented with opportunities to optimize their financial well-being through employee benefits during the annual enrollment period.

Maximizing Your Employee Benefits

We know how complex the benefits world can be, which is why we decided that it’s important discuss as open enrollment season is around the corner. Understanding and maximizing your employee benefits package can save you money and & make a huge impact for you and your loved ones. So Let's dive in -

1. The Enrollment Period is Your Golden Hour

The enrollment period is your once-a-year opportunity to customize your benefits to suit your unique needs. Remember, benefits are not a one-size-fits-all proposition. Each year, your personal circumstances may change, and so should your benefits selection. Pay close attention to the offerings your company provides, whether that's healthcare plans, retirement accounts, or life insurance. Use this window to align your selections with your current life stage and future goals.

2. Say Yes to Wellness Programs

Many companies offer wellness programs that can help boost your health and save you money. These could range from discounted gym memberships and free mental health resources, to smoking cessation programs and nutrition counseling. Not only do these programs promote a healthy lifestyle, but they can also lead to lower healthcare costs down the road. Make sure to explore all these programs and take advantage of the ones that resonate with your wellness journey.

3. Mark Your Calendar: Benefit Dates Matter

Keeping track of important benefit dates is crucial to maximizing your benefits. This includes the deadline for submitting receipts for health savings accounts (HSAs) or flexible spending accounts (FSAs). Remember, these accounts use pre-tax dollars, meaning every unclaimed dollar is a missed saving opportunity. Make it a habit to save receipts and submit them before the deadline.

Armed with these tips and resources, you can confidently approach your benefits selection. Remember, the goal isn't just to sign up for benefits—it's to maximize them in a way that best serves your needs and future goals.

401 Financial Cohort

Tune into Crypto Office Hours on Financial Advisor TV