From the Blog:
Jennifer Greenberg
December 1, 2023

Can Rain and Credit Card Off-Ramps Be Used Safely by Foundations?

Can Rain and Credit Card Off-Ramps Be Used Safely by Crypto Foundations?

Many crypto foundations struggle with the risks of using a centralized exchange to convert crypto into fiat. Rain and credit card off-ramps could be the answer to avoid a complicated process that stems from the flow of economic value between crypto and cash funds, not to mention risks associated with the U.S. Securities and Exchange Commission (SEC). Here, we explain how your crypto foundation can safely use Rain and credit card off-ramps without the need for a centralized exchange.   

What are Off-Ramps?

Crypto off-ramps simplify the flow from crypto to fiat money so you can cash out of crypto and have money in the bank, so to speak. You can exchange your crypto quickly and safely, so you can bridge the gap between cash and modern forms of currency, allowing your company or foundation to reduce friction, time, and money associated with legacy fiat rails.

What is Rain?

Rain is a spend management platform revolutionizing interoperability for digital assets with the fiat ecosystem. As a result, crypto foundations have seamless access to fiat, making funding available for your projects using on-chain assets via virtual cards without the need for a centralized exchange.

What Does Rain Support?

Rain supports a variety of corporate structures including, foundations, DAOs, holding companies, etc.

How are Rain and Credit Card Off-Ramps Used?

Rain can on-board your foundation and its employees, contractors, and contributors directly and safely. Because crypto was designed to remove the barriers and make it easier to move value to access funds between economic models, using Rain or credit card off-ramps brings traditional money and the decentralized web together. 

With Rain, you get access to a credit card platform that can be used at merchants worldwide. You get instant access to spending in real life without having to off-ramp funds into fiat first. As a result, your project has a seamless way to continue to utilize your self-custody assets without having to rely on off-ramping or storing funds with a bank partner.

What Makes Rain Better for Foundations?

Foundations are a relatively new corporate structure which has gained popularity with crypto native projects and protocols. Since the corporate structure is fairly new and requires a set up in jurisdictions which support this type of structure, a lot of foundations tend to have a difficult time getting access to bank accounts and bank partners. Similarly, foundations have challenges getting reliable access to exchanges to help off-ramp crypto tokens as exchanges usually require a bank account to liquidate money into. With Rain, you are able to access corporate spend management tools without needing a bank account or an account with a centralized exchange to interface with the platform.

Rain is the most direct way to access on-chain assets without converting them into fiat for spending or needing a cash bank balance to access a credit line. It is the only solution that doesn't require a centralized exchange, OTC Desk, or a bank account, so foundations can use Rain to pay for expenses using their on-chain assets. Because it operates on the credit rails, it can be used more like a credit card, with a credit limit set against the value of on-chain assets.