Financial Services Company Plaid Integrates Crypto Exchange Data

Financial services API developer Plaid is adding account information on crypto assets from cryptocurrency exchanges.

The financial service provider said it is now able to display information such as balances, trades, and crypto asset types held by three exchanges, Binance.US, Kraken, and Gemini.

In addition to cryptocurrency exchanges, the platform also provides encrypted data for trading apps like Robinhood and SoFi.

Plaid is a financial services company that builds the data transfer network that powers fintech and digital financial products, allowing apps to connect with users' bank accounts.

Alain Meier, head of the identity at Plaid, expressed that they would only read transaction information and store it in a wealth management app or money transfer app. There will be no potential access rights, digital asset theft, and other incidents. It also provides clients with due diligence and risk management policies.

Later this year, the company will continue to expand its services to Blockchain.com and BitGo.

Plaid, a startup fintech company, was acquired by Visa for around $5.3 billion dollars at the beginning of 2020.

The confidentiality of customer information has always been classified as sensitive data. This is an important consideration when doing business, and it is usually not violated.

Plaid works with several exchanges, including Coinbase, through its identity verification and bank-linked account funding services.

Meier said that“Plaid is composed of a lot of people who are just nuts about crypto. Over time, we want to help bridge that gap between Web2 and Web3 and build developer-first tooling products that can do that.”

On June 25 in 2020, complaints were filed against the startup company, alleging that Plaid was “data plumbing” popular financial services such as Venmo and Stripe. In order to monetize transactions of millions of users for its own personal gain. Data plumbing simply refers to the act of accumulating user-sensitive and private information that is stored in a cloud computing model.

Image source: Shutterstock