Crypto.iQ: Launching Digital Asset Operations Through the Existing ATM Infrastructure

Crypto.iQ enables banks to provide customers with digital asset operations through the existing ATM network — without upgrading devices and without obtaining a crypto license. The solution creates a secure integration layer between ATMs and licensed crypto service providers (VASPs), ensuring the execution of operations, data processing, and regulatory compliance.

Why this is needed

Today, banks view digital assets as a new channel for attracting customers, but they face several constraints: the need for a crypto license, complex integration with VASPs, new compliance requirements, and changes to ATM processing. Crypto.iQ removes key barriers and allows banks to test demand for crypto services without capital investments or infrastructure changes.

How it works

The solution integrates into the existing Payments.iQ NG architecture and uses the Crypto.iQ microservice for routing and controlling operations. Its main functions include processing scenarios for buying, selling, and exchanging digital assets, online calculation of rates, fees, and final amounts, support for KYC and AML procedures on the side of the bank and/or VASP, transmission of transactional data to the core banking system for monitoring and reporting, as well as written confirmations of operations in the form of receipts and electronic notifications.

A typical operation sequence is as follows. The customer selects the exchange service in the ATM menu and specifies the currency, operation type, and amount. The system requests the current rate and transaction parameters from the VASP. In the case of a purchase, the customer inserts cash. In the case of a sale, the customer goes through identification and confirms receipt of funds. iQ sends the data to the VASP via API, and the VASP executes the transaction. After completion, the ATM prints a receipt with the details.

For the bank, the process looks the same as a standard ATM transaction, since crypto operations take place externally at the licensed provider.

What the bank gets

The bank can operate without a crypto license, as all operations are performed by a licensed VASP. The bank acts as a customer access channel and does not bear responsibilities related to storing crypto assets or conducting crypto transactions. The solution provides a fast launch and a low entry threshold. There is no need to upgrade ATMs, change processing, or deploy in-house crypto infrastructure. Connection is possible within the current architecture.

The bank gains manageability and control of risks. Through a unified management center, it can configure limits, KYC/KYT rules, scenarios, and available operations. It is possible to start with a pilot on a limited number of devices and scale as needed. The solution creates an additional revenue source. The bank can monetize operations through fees, rate markups, or service charges, increasing ATM network utilization. It also enables a new service for customers without changing familiar channels. Customers gain access to digital assets through the familiar ATM interface, without installing applications or going through complex procedures.

Architecture and security

The solution operates based on the Payments.iQ NG cardless transaction platform. Crypto.iQ provides two-way integration between the ATM, the bank, and the VASP, AML/KYC control in accordance with jurisdictional requirements, delivery of transactional data to the core banking system for reporting, and handling of errors and atypical scenarios, such as declined operations, limit mismatches, or customer cancellations. All digital asset operations pass through licensed providers, ensuring regulatory compliance and clearly separating responsibilities.

Prospects

Crypto.iQ enables banks to quickly test crypto services, assess demand, and, if necessary, deploy the service across the entire network of devices. The solution lowers the entry threshold into a new market and contributes to expanding the range of available services within the existing infrastructure.

As BS/2 Business Analyst Aleksandr Grebenko noted:
“The main advantage of the Crypto.iQ solution is that the crypto service can be launched on existing infrastructure without additional investment. This enables banks to quickly assess customer interest and determine further steps in developing the service.”

Crypto.iQ is part of the Payments.iQ NG platform, designed to expand the functionality of self-service devices and quickly launch new services within the existing infrastructure.

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Would you like to learn more about how Crypto.iQ can operate within your banking network? Contact us to discuss integration possibilities and the launch of a pilot project.