Bread, (BRD), a Zurich based crypto wallet provider, announced on Oct 6 that the platform has hit 6 million users globally. These numbers have been particularly driven by the high adoption rates in Latin America and India; the firm is now optimistic of hitting the 10 million mark within the first phase of 2021.
BRD has been in the game since 2015, but only skyrocketed its user acquisition this year. As recent as July, the digital wallet provider was only doing 550,000 Monthly Active Users and it took close to five years for the firm to hit 1 million. It now seems that the COVID-19 pandemic was a much-needed booster for this startup. The firm’s user base has been growing by about 1 million every 2 months.
According to BRD’s CEO Adam Traidman, the pandemic is causing most people to dig deeper into the fundamentals of existing systems, hence the reaction to optional markets such as crypto,
“It’s causing a lot of thinking about money and finances. People have had a lot more time over the last six months to look at their investments and as a result of that, we found that for cryptocurrency in general, but especially for BRD’s business, we’ve been growing dramatically.”
Adam went on to highlight that BRD’s dramatic growth has resulted from two groups of users; millennials and those affected financially by the COVID-19 pandemic. The first group, which happens to be very speculative and tech-savvy leverage platforms like Robinhood, access traditional markets instead of brokerage firms. The latter mostly compose of individuals looking to hedge for inflation or currency devaluation in shaky economies like Argentina and Venezuela.
BRD’s recent success is a culmination of fundamentals, including its non-custodial crypto wallet that allows users to retain control of their digital assets. According to the firm, this saves the hustle of a lengthy registration process, limiting most people from being onboarded into a financial ecosystem. BRD users can also use their bank accounts or Apple Pay to acquire cryptocurrencies. The startup has had quite successful funding rounds, with the latest being a series B that raised $15 million back in Jan 2019.