- July 30, 2023
- Posted by: [email protected]
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Animoca Brands, a prominent player in the blockchain gaming and Web3 space, has entered a strategic partnership with Hi, a Web3 neobanking app that offers cryptocurrency exchange services, digital banking, and unique NFT-styled debit cards. As part of this collaboration, Animoca Brands’ co-founder and executive chairman, Yat Siu, is investing $30 million in Hi’s Neobank platform.
Hi stands out as a Web3 app that combines the functionalities of a cryptocurrency exchange, digital banking services, and the novelty of customizable NFT-styled crypto debit cards. Siu views the personalization aspect of Web3-based services as a pivotal element, aligning with Hi’s vision and his own perspective on the interplay of culture and Web3. The flagship product from Hi is a crypto-friendly Mastercard debit card that enables users to personalize their physical cards with NFT avatars they own, reflecting their individuality in innovative ways.
A crucial element of this partnership is the potential to enhance the utility of various Web3 tokens and NFTs. The Hi ecosystem comprises Web3-integrated financial applications and the Hi protocol, an Ethereum Virtual Machine-compatible sidechain. Additionally, the collaboration aims to promote a “unique human authentication mechanism” using the Hi protocol’s proof of human identity solution.
Sean Rac, Hi’s co-founder, highlights that the proof of human identity solution addresses the limitations of the Web2 era, where a few dominant companies controlled user data and identities as credential providers. In contrast, Hi’s approach employs a dual-node structure, with one set of nodes verifying accounts owned by humans (identity validators) and block producers securing the network. This approach opens up possibilities for “human-only” networks and decentralized applications.
As part of the partnership, Hi users gain access to Animoca’s Web3 ecosystem tokens, including SAND from The Sandbox and ApeCoin. With over 3.5 million users, the Web3 app is set to offer a card service that allows payments worldwide using fiat or crypto debit cards, tapping into Mastercard’s vast network of approximately 90 million merchants.
The collaboration positions Hi to compete with neobanks like Revolut and N26, while its focus on Web3 is likely to attract enthusiasts seeking to showcase their prized NFTs, such as Bored Ape Yacht Club, Meebit, or Pudgy Penguin NFTs.
Siu emphasizes that the investment in Hi is driven by the belief that the neobank’s core application will facilitate on- and off-ramp rails, thereby promoting mass adoption of Web3. This investment also holds significant value for Animoca Brands, which has already invested in various NFT and Web3 projects.
As part of its expansion efforts, Hi has obtained approval as a virtual asset service provider (VASP) in Lithuania and is recognized as a digital currency operator by Italy’s payments service regulator. The platform is in the process of pre-registering to secure a VASP license through the Hong Kong Securities and Futures Commission, further extending its presence in Asia.
Animoca’s continued investments in blockchain gaming and Web3 projects align with its plans for a proposed $1 billion metaverse fund, pending regulatory approval in Hong Kong.
