Bridging the crypto-fiat gap: How GOAT Finance revolutionized its banking operations with Fiat Republic
Case study overview: GOAT Finance and their fiat headaches
With the rapid growth of the cryptocurrency market, linking traditional banking with digital asset providers remains a critical challenge. In this case study, we will analyze how GOAT Finance, a regulated P2P/OTC exchange service provider based in Lithuania, transformed its fiat banking operations with the help of Fiat Republic.
As a relatively new entrant, GOAT Finance has quickly become a major player in the P2P cryptocurrency space. It specializes in processing medium to large orders for corporate and individual clients. But like many crypto-native businesses, they struggled to secure reliable banking partners and maintain stable fiat payment rails until they found Fiat Republic and our all-in-one API.
In this case study, we examine how GOAT Finance overcame typical industry challenges like transaction delays, account closures, and limited banking options using Fiat Republic’s comprehensive solution. This partnership has allowed GOAT Finance to access multiple IBANs across multiple jurisdictions, instant payment capabilities, and a robust compliance infrastructure while maintaining operational efficiency and regulatory compliance.
In addition to streamlining Goat Finance’s operations, the transformation prepared them for sustainable growth in an increasingly regulated market. Their journey provides important lessons for crypt businesses looking to connect the world of digital assets with the traditional banking infrastructure, but in a way that doesn’t compromise the speed and reliability that modern traders demand.
The challenges
What difficulties did you face without a fiat off-ramp solution for your clients?
Without a proper fiat off-ramp solution, we were forced to rely on smaller banks and non-crypto-friendly financial institutions. This presented several challenges. Firstly, it significantly increased the execution times for orders, as these institutions were often slower and more cautious in processing transactions. Secondly, it posed a risk to our ability to scale the business, as the lack of reliable banking partners made it difficult to handle larger volumes efficiently. Finally, we faced the constant threat of account closures, as these institutions would frequently reassess their risk appetite and decide to discontinue services to crypto-related businesses, creating instability in our operations.
Did you attempt to engage banks directly? If so, what obstacles did you encounter?
Yes, we attempted to engage banks directly but encountered several challenges and disappointments. For example, in countries with clearer regulatory frameworks, such as Lithuania and Estonia, we tried to open corporate accounts with local banks specifically to pay salaries. Despite completing all necessary KYC/AML and due diligence processes and even paying onboarding fees, the banks ultimately refused to open the account due to our involvement in crypto.
The main obstacle we faced was that traditional banks remained very hesitant to work with crypto businesses, regardless of compliance with regulatory standards. As a result, we’ve had to rely on EMIs (Electronic Money Institutions), which present their own challenges. Not all EMIs offer the same capabilities, such as SEPA Instant and Swift, limiting our operational flexibility and speed.
What payment operational issues did you aim to resolve by incorporating a fiat-first provider?
We faced significant challenges with traditional banks when processing transactions related to cryptocurrency trades. Specifically, the originating bank blocked around 20% of these transactions, often flagging crypto-related transfers as fraudulent. This created delays, frustration, and operational inefficiencies.
How crucial is the ability to offer instant payment experiences to your clients?
The ability to offer instant payment experiences, particularly through SEPA Instant, is extremely important in the crypto trading space. Traders are already accustomed to using services that support instant payments and expect the same when engaging with us. Additionally, many clients are used to making immediate transfers within their local countries for various transactions, whether with vendors, family, or friends.
By enabling instant payments, we ensure three key factors: trust, convenience, and scalability. Instant payments help build trust by showing customers we can handle their transactions quickly and efficiently. It adds convenience by aligning with their existing habits, and it also supports scalability by allowing us to process FIAT transactions and gain liquidity faster and more securely. This capability is vital for keeping pace with the fast-moving crypto market.
The solution
What were the critical factors in selecting your fiat provider?
The critical factors in selecting our fiat provider were the availability of Instant Payments, vIBANs, and multiple IBANs from different countries. These features are essential for us as they enhance the speed and flexibility of our transactions while also allowing us to build more trust with our customers. By offering them the ability to use local IBANs and faster payment options, we can deliver a smoother and more reliable service, which is crucial in the competitive crypto space.
Why did you choose to partner with Fiat Republic over other providers?
We chose to partner with Fiat Republic due to their proven reliability and comprehensive solutions tailored to the crypto industry. One key factor is their availability of multiple IBANs, which gives us the flexibility we need to manage transactions across various banking channels. Additionally, their robust API allows us to seamlessly integrate numerous solutions while supporting multi-currency transactions, which is crucial in the fast-paced crypto space.
Moreover, Oxygen, Fiat Republic’s Transaction monitoring system, aligns perfectly with our compliance needs, particularly as we prepare for the upcoming MiCA regulations. Their combination of banking access, technical infrastructure, and a compliance-first approach makes them the ideal partner for our business operations.
How does Fiat Republic’s single API with aggregated crypto-friendly banks in various jurisdictions address your need for fiat rail redundancy?
Fiat Republic’s single API solution significantly enhances our operational resilience by providing access to a network of crypto-friendly banks across multiple jurisdictions. This aggregation allows us to diversify our fiat banking partners, mitigating the risk of service disruptions from any single bank. By integrating with the Fiat Republic, we gain redundancy in our fiat rails, meaning if one banking partner faces regulatory, technical, or operational issues, our ability to process fiat transactions is not compromised. This ensures continuous service availability for our customers and reduces the risk of transaction failures, enhancing the overall reliability of our fiat-to-crypto services.
How does Fiat Republic’s unique compliance approach ensure access to sustainable banking and payment rails?
Fiat Republic’s compliance-first approach is key to maintaining sustainable relationships with banking and payment providers. Their rigorous adherence to KYC, AML, and other regulatory requirements ensures that we stay compliant with the highest standards, making us more attractive to traditional financial institutions. By embedding advanced compliance measures into its operations, Fiat Republic bridges the gap between the highly regulated banking sector and the crypto space. This compliance infrastructure provides us with long-term, stable access to banking and payment rails, reducing the likelihood of account closures or service disruptions that can stem from perceived regulatory risks.
Can you explain the impact that Eaglenet has on your operations?
Eaglenet provides crucial backend infrastructure that supports seamless connectivity between fiat and crypto transactions. Through its efficient network, we streamline settlements, reduce transaction times, and maintain lower operational costs. Eaglenet’s added efficiency and reliability contribute directly to our ability to deliver fast, secure, and cost-effective services to our customers. It also ensures compliance with local banking regulations and enhances our ability to operate across different regions, allowing us to scale without being limited by fiat-to-crypto transaction bottlenecks.
The experience / impact
How quickly could you integrate with the platform, and what factors contributed to this timeline?
We haven’t started the full integration yet, but a major advantage is that Fiat Republic allows us to operate without integration. This flexibility is a big plus, enabling us to begin operations while working on the technical setup. We estimate that the full integration will take around 2 weeks, with an additional 2 to 4 weeks for coding and resolving any issues. This phased approach ensures that we can maintain business continuity while refining the integration process.
Describe your experience with the onboarding process.
Our onboarding experience with Fiat Republic was smooth and well-structured. From the very beginning, they provided clear guidance on compliance requirements, documentation, and technical specifications. Their team was highly responsive, addressing any questions we had promptly and ensuring that all KYC/AML checks were completed efficiently. The onboarding process was transparent, and we felt supported at every step, which made it easier for us to meet the necessary regulatory requirements and get operational in a timely manner.
How would you characterize your collaboration with the Fiat Republic team?
The collaboration with the Fiat Republic team has been excellent, even though we have not yet integrated the platform. Their sales and compliance teams have been very proactive and responsive, communicating with us regularly through our dedicated Slack channel. They’ve shown a genuine investment in helping us succeed, offering valuable insights into compliance best practices and providing clear guidance as we prepare for integration. Their deep understanding of the crypto space and hands-on support have made the process smooth and collaborative.
Comment from CEO of Goat Finance, Paul Padilla
“The partnership with Fiat Republic represents a significant step forward. With over two years of experience in the industry and having encountered numerous challenges, I was initially skeptical. However, the Fiat Republic team has exceeded my expectations with their efficiency in onboarding, promptness in responding to our queries, openness to dialogue, and consistent ability to address our reasonable needs.
This has been, without question, the most professional interaction I have had with a banking partner to date. Their commitment to excellence is evident, and I would describe them as highly reliable. Their products and services are of exceptional quality. Additionally, the ability to issue vIBANs across multiple jurisdictions offers us substantial scalability, a critical factor for our growth. I am confident that our partnership holds great potential for the future.”
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