Bitcoin custody provider Casa will now allow users to purchase bitcoin directly to their wallets, without having to go through an exchange.
Bitcoin custody solution provider Casa has announced today that it is offering in-wallet bitcoin purchases, allowing Casa App users to forgo exchanges when they add to their HODLings.
In a release shared with Bitcoin Magazine, Casa explained that users can make these purchases using Apple Pay or debit cards, which connect them to retail exchanges through a secure API provided by Wyre. Wyre offers similar services to other projects in the space, such as DropBit.
Casa, which positions itself as a particularly security-conscious provider of private key management, noted that while this feature adds convenience, it does not impact custody or the safety of funds. By automatically moving funds into a wallet, the service would also theoretically eliminate any risk of hack or scam incurred by leaving bitcoin on an online exchange.
“This update builds on Casa’s dedication to simplifying the entire process of buying and managing bitcoin — without compromising on security,” per the announcement. “As with all Casa’s technologies, the new Bitcoin buying service is secure-by-design. Casa does not have custody of customers’ bitcoins at any point in the process.”
In response to questions from Bitcoin Magazine, Casa said that bitcoin buying fees will be market standard for debit card payments and charged through Wyre at $0.30 per transaction, plus 2.9 percent for U.S. cards or 3.9 percent for international cards. Each purchase will also include a mining fee, as they represent on-chain transactions.
Wyre will require some KYC information from users who buy BTC through the service, though Casa said that it will never store this data.
"We've worked with Wyre to keep KYC as minimal as possible — for both convenience and safety," a Casa representative told Bitcoin Magazine. "There's no document upload required — all information is submitted and verified through Apple Pay and processed through Wyre. Once live, Android users will need to supply basic billing information to Wyre, confirming their card and protecting against fraud."
The representative added that there are purchase limits of $250 per day and $1,500 total before additional KYC information is required. But users do not have to input any KYC information if they aren't using the Casa App to make bitcoin purchases.
"This has absolutely zero impact on existing or future pseudonymous clients and, as always with Casa, you're in complete control," the Casa representative said in the interview.
As a tool to lower barriers of entry to Bitcoin, this new service is similar to Casa’s free wallet product launched in June. That product received some negative feedback following Casa’s emphasis that it maintained robust privacy even though it made some tradeoffs to improve useability. Though there are some inherent KYC requirements that come along with this latest feature, it could be a powerful way to improve the buying process for some Bitcoiners.
“By incorporating bitcoin buying directly into a secure self-custody wallet, we remove the friction from the purchasing process while also eliminating the points of failure where users are vulnerable to loss, theft or fraud,” said Nick Neuman, Casa’s CEO, per the announcement. “Whether you’re an experienced Bitcoin buyer or taking your first steps, there is no easier way to buy bitcoin while ensuring your investment is secure.”