Digital banking in Europe is joining in on the cryptocurrency hype.
European fintech player Hush has announced it will be running an Initial Coin Offering (ICO) to fund its banking app plans, held through French boutique Chaineum with pre-sales to debut in the week of January 22nd.
The Luxembourg-based Hush is proposing to create a banking app where users can trade digital “USH” tokens in exchange for services as well as hold and spend both traditional and cryptocurrencies. The app’s development is being spearheaded by Eric Charpentier, who previously founded the French neobank Morning.
“The growing use of cryptocurrencies and the accompanying increase in Initial Coin Offerings, or ICOs, create exciting opportunities to transform the banking experience by leveraging the collective power of community members to both innovate and at the same time guarantee sustainable economic independence,” says Charpentier.
Hush will shortly be putting in an application for approval as an European Payment Institution, which if successful, will allow the start up to offer a range of premium services. These will include:
A premium payment card with enhanced security features
Cryptocurrency wallets for secure investment management
A real time cryptocurrency exchange/conversion functionality to allow transactions at any time
A dedicated “project” account to allow users the ability to fund and develop a project by setting objectives.
New accounts will be invitation and sponsorship only for the first year, with plans to open up to the public thereafter. Hush’s ICO is designed to “guarantee a stable bank capital management strategy” for customers, whilst ensuring the firm’s financial independence.
The app’s own “USH” tokens represent part of Hush’s unique business model, anchored in the mission to unify a community around shared convictions and promotion of cryptocurrencies. According to the platform, these USH tokens will offer users a series of benefits, reflecting Charpentier’s aims at achieving a collective governance model. These include:
USH holders will be invited to take part in the Hush Ambassador programme, where participants can propose new ideas for USH services and functionalities, as well as vote on the proposals of other users.
A monthly rewards plan calculated on participation and engagement in the community, financed by a fund into which a monthly commission of 0.2 per cent on card payment and currency exchanges is paid.
Financial rewards paid in USH corresponding to 10 per cent of net profits from Hush’s commercial activities, distributed on a pro rata basis according to the amount of USH held.
Charpentier added: “Our vision is to forge an active community with a two-fold objective: [to] provide people who are comfortable with cryptocurrencies with a stable, regulated environment to develop everyday use of euro-denominated cryptocurrency, [and to] create opportunities for people who are new to cybercurrencies to discover their potential while taking advantage of a mobile service that includes innovative currency exchange services.”