The global online market is poised for significant growth, with a valuation projected to reach approximately $88 billion by 2025 and potentially more than double by the early 2030s, according to Grand View Research. However, RYKI, a Virtual Asset Service Provider (VASP), notes that the industry's payment infrastructure is struggling to keep pace with this rapid expansion. Digital asset payments are gaining traction, with industry analysts estimating that nearly 17% of all iGaming bets worldwide are now crypto-funded. Furthermore, over 30% of online operators have begun to accept some form of cryptocurrency payment.
Despite this rising demand, many operators still rely on outdated payment systems designed for a different era. Current cross-border transactions often depend on correspondent banking and wire transfers, resulting in multi-day settlement times, foreign exchange spreads, and cut-off delays.
The gaming sector faces several challenges, particularly concerning the slow and expensive nature of cross-border settlements. Payments routed through SWIFT and correspondent banks typically take between three to seven days to clear, with each transaction accruing additional costs due to currency conversion ranging from 50 to 100 basis points.
Many operators encounter the issue of double conversion, particularly those lacking gaming-friendly partners in the Western Hemisphere, as crypto off-ramps frequently settle in euros. This necessitates another conversion to dollars, adding yet another layer of transaction fees.
Compliance poses yet more difficulties, with standard banking relationships often leading to freezes or holds on funds when crypto-linked activity is detected, thereby disrupting operations. A lack of reliable on-ramps for crypto-native customers also hinders high-value players who hold stablecoins, as they struggle to convert these into gaming credits or pay event fees.
Additionally, the manual reconciliation of transactions across different events, currencies, and counterparties only serves to elevate operational costs and drain resources. RYKI, which has processed over $1 billion in trades since its inception in 2020 and is registered in the British Virgin Islands, recognizes these challenges and has established a dedicated service line tailored to the gaming industry.
"Gaming has become a financial business as much as an entertainment one," says RYKI CEO Lennon Sweeting. He highlights that larger operators manage substantial customer funds and bear institutional-sized foreign exchange risks while relying on payment systems that do not align with customer behavior.
RYKI offers online gaming operators, casinos, iGaming platforms, software providers, and conference organizers a streamlined approach for accepting stablecoin and crypto payments. The service ensures same-day settlement into fiat currencies and simplifies treasury management across multiple jurisdictions.
The company's solution integrates four core capabilities. First, it provides stablecoin payment rails with direct fiat settlement, eliminating the need for fragmented payment processes. By bypassing an intermediary currency, operators can benefit from direct US dollar liquidity and same-day settlement.
Second, RYKI offers audited, compliant custody of clients' digital assets, alleviating the need for operators to develop their own crypto handling systems amid regulatory uncertainties. The third capability involves comprehensive treasury management, allowing operators to manage over 150 currencies with real-time visibility into high-volume and foreign exchange flows.
Lastly, RYKI specializes in gaming-compliant onboarding processes. Its expertise ensures fewer complications when managing compliance requirements, thereby reducing the occurrence of unexpected fund freezes.
As a fully registered entity with the British Virgin Islands Financial Services Commission, RYKI provides gaming businesses with access to regulated crypto payment pathways, custody, treasury management, and settlement services through a licensed provider. This arrangement allows gaming companies to maintain their licensing while RYKI serves as their compliant digital asset infrastructure.
Demonstrating its effectiveness, RYKI has recently partnered with a globally recognized online gaming operator to streamline operations by removing unnecessary euro-to-dollar conversions. This collaboration has resulted in same-day settlements, minimal compliance friction, and has allowed the finance team to operate more efficiently.
Premium casinos can also benefit from a unique crypto credit and settlement model designed by RYKI, enabling VIP players to use their digital assets without requiring liquidation. The company boasts that verification times have been reduced to about 60 seconds compared to several days through conventional banking methods.
RYKI views the vast potential within untapped crypto assets, estimating that over $50 billion in holdings among high-net-worth players remain unexplored by premium gaming venues. The company also facilitates transactions for gaming events, permitting organizers to swiftly accept stablecoin payments and automate reconciliations across various platforms.
Sweeting expresses that the demand for a regulated counterparty capable of expediting settlements and ensuring compliance has intensified as operators look to embrace digital assets. As the market evolves, working with a fully registered VASP is becoming the norm. RYKI aims to help operators establish a reliable infrastructure that caters to high-value, crypto-native customers to keep pace with their agile competitors.
