Going Bankless: Comprehensive Guide to Self-Custody Finance in Europe
Introduction
The traditional banking system comes with significant limitations for Europeans: account fees, transfer restrictions, negligible interest rates, and limited control over your own money. The European Bankless Solution offers a comprehensive alternative—a complete self-custody financial system that eliminates these limitations while providing enhanced security, yield generation, and payment flexibility.
Key Benefits
- Zero bank fees for everyday financial activities
- Self-custody giving you complete control of your assets
- Passive income through yield-bearing assets (~7% currently)
- Visa card compatibility for everyday spending
- Cashback rewards of up to 5% on purchases
Components Overview
Monerium
Fee-free EUR on/off-ramp with regulatory compliance
Gnosis Pay
Self-custodial Visa card for everyday spending
Safe Wallet
Multi-signature security for digital assets
Ledger
Optional hardware security enhancement
Gnosis Chain
Blockchain infrastructure with yield-bearing assets
Additional Tools
Zeal Wallet, CoW Swap, Backed, deBridge
Core Concepts and Terminology
Self-Custody in Finance
Self-custody represents a fundamental shift in financial control. Instead of trusting a bank or institution to hold your assets, you maintain direct control of your private keys—essentially becoming your own bank. This distinction is critical:
Custodial Solutions
- Third party controls your assets
- Requires trust in the institution
- Subject to institutional policies
- May freeze or restrict access
- Usually easier for beginners
Non-Custodial Solutions
- You control your private keys
- No third-party trust required
- Freedom from institutional restrictions
- Full access to your assets at all times
- Requires personal security responsibility
With self-custody comes responsibility. You must implement appropriate security measures and backup procedures to protect your assets. However, modern tools like multi-signature wallets have made self-custody both more secure and more accessible.
Key Terms
- EURe
- A regulated on-chain euro stablecoin issued by Monerium, backed 1:1 by actual euros and compliant with European financial regulations.
- sDAI
- Yield-bearing wrapped DAI token on Gnosis Chain, generating approximately 7% annual interest through the DAI Savings Rate mechanism.
- IBAN
- International Bank Account Number—a standardized identifier enabling cross-border payments, available through the Monerium integration.
- Safe
- A multi-signature smart contract wallet requiring multiple approvals for transactions, significantly enhancing security through distributed control.
- MEV
- Maximal Extractable Value—potential profits extracted from users through transaction ordering manipulation, with protection mechanisms available through CoW Swap.
- RWAs
- Real-World Assets—tokenized versions of traditional financial instruments like stocks and ETFs, accessible on-chain through platforms like Backed.
Protocol Purpose and Value Proposition
The Banking Problem for Europeans
Traditional banking in Europe presents several significant limitations:
- Monthly account maintenance fees
- Transaction and withdrawal costs
- Near-zero interest rates on deposits
- Restrictive KYC procedures
- High fees for international transfers
- Limited control over your financial data
- Vulnerability to institutional failure
- Restricted access during banking hours
The Bankless Alternative
The European Bankless Solution addresses these problems by offering:
- Complete financial self-sovereignty
- Seamless crypto-to-traditional finance bridge
- Enhanced security through multi-signature technology
- Approximately 7% yield on euro-backed assets
- Up to 5% cashback on everyday spending
- Regulatory compliance with privacy preservation
- 24/7 access to your financial system
- Freedom from institutional restrictions
The European Bankless Solution isn't just an alternative to traditional banking—it's a complete paradigm shift in how Europeans can manage their finances, combining the best of traditional financial infrastructure with the innovations of decentralized finance.
Technical Overview: How the System Works
Monerium Integration
Monerium serves as the critical bridge between traditional banking and the crypto ecosystem:
- Licensed e-money institution issuing EURe, a regulated euro stablecoin backed 1:1 by euros
- Provides cross-chain availability across Ethereum, Polygon, and Gnosis Chain
- Enables zero-fee transfers between bank accounts and blockchain wallets
- Offers IBAN functionality for receiving traditional bank transfers
- Complies with European financial regulations while preserving user privacy
Safe Multi-Signature Architecture
The Safe wallet (formerly Gnosis Safe) provides the security foundation:
- Smart contract-based wallet with advanced security features
- Configurable owner structure and threshold requirements (e.g., 2-of-3 signatures required)
- Transparent and auditable transaction approval process
- Account recovery options in case of key loss
- Integration capabilities with hardware wallets like Ledger
Gnosis Pay Framework
Gnosis Pay connects your self-custodial crypto wallet to traditional payment systems:
- Direct connection between Safe wallet and physical Visa card
- Seamless transaction flow from on-chain to off-chain payments
- IBAN functionality and SEPA integration
- Cashback system providing up to 5% rewards based on GNO holdings
- Daily spending limits of up to €8,000
sDAI Yield Generation
sDAI enables passive income on your euro-backed assets:
- Implementation of the DAI Savings Rate mechanism on Gnosis Chain
- Approximately 7% annual yield (as of March 2025)
- Automatic interest accrual through rebasing mechanism
- Audited smart contract architecture
- Maintains liquidity while generating returns
User Guides
Setting Up Your Bankless Stack
-
Create a Monerium account and obtain EURe
Visit Monerium and complete their KYC process. Connect your bank account to enable transfers between traditional banking and your on-chain euro stablecoin (EURe).
-
Set up a Safe wallet on Gnosis Chain
Visit Safe to create a multi-signature wallet on Gnosis Chain. Configure multiple owners and threshold requirements for enhanced security.
-
Order and activate a Gnosis Pay card
Apply for a Gnosis Pay card (approximately €30) and connect it to your Safe wallet, providing physical card access to your digital assets.
-
(Optional) Integrate a Ledger hardware wallet
For additional security, purchase a Ledger hardware wallet (approximately €60) and add it as an owner to your Safe wallet configuration.
-
Fund your account and convert to yield-bearing assets
Transfer euros through Monerium, convert appropriate amounts to sDAI for yield generation, and ensure sufficient EURe is available for spending.
Optimizing for Cashback Rewards
Gnosis Pay offers generous cashback rewards on all card spending:
- Purchase at least 2 GNO tokens (approximately €260 total at current prices)
- Store GNO in your Safe wallet to qualify for the 2% base cashback rate
- Obtain the OG NFT if possible for an additional 1% cashback (total up to 5%)
- Monitor and claim rewards through the Gnosis Pay dashboard
Managing Yield-Bearing Assets
Optimize your passive income through proper management of sDAI:
- Convert a portion of your funds to sDAI to start earning approximately 7% yield
- Monitor yield accumulation through the Safe wallet interface
- Balance between immediate spending needs and long-term yield by adjusting your allocation
- Convert sDAI back to EURe when needed for spending through your Gnosis Pay card
Trading and Investment Guide
Expand your financial activities beyond basic banking:
- Use CoW Swap for trading to benefit from MEV protection
- Access Backed's tokenized stocks and ETFs for traditional investment exposure
- Leverage deBridge for cross-chain operations when needed
- Implement security best practices for all transactions
Use Cases and Applications
Everyday Banking Replacement
The European Bankless Solution can fully replace traditional banking for daily financial needs:
- Salary reception directly to your Monerium/Gnosis Pay IBAN
- Bill payments and purchases using your Gnosis Pay Visa card
- ATM withdrawals from any Visa-compatible machine, with daily limits up to €8,000
- Financial record keeping with transparent on-chain transaction history
Travel and International Payments
The system offers significant advantages for travelers and international transfers:
- Global card acceptance wherever Visa is accepted
- Efficient currency conversion with competitive exchange rates
- Enhanced security while traveling through multi-signature protection
- Emergency fund access through multiple recovery options
Investment Portfolio Management
Beyond banking, the system offers powerful investment capabilities:
- Diversified portfolio across crypto and tokenized traditional assets
- Passive income generation through sDAI and other yield opportunities
- Risk management through multi-signature controls
- Tax-efficient record keeping for accurate reporting
Business Applications
The system offers compelling advantages for freelancers and small businesses:
- Alternative business banking without traditional limitations
- Client payment processing through IBAN or direct crypto transfers
- Business expense management with multiple cards and spending controls
- Treasury diversification between operating funds and yield-generating assets
Ecosystem Economics
GNO Token Utility and Economics
The GNO token serves multiple functions within the ecosystem:
- Cashback determination - holding at least 2 GNO tokens (approx. €260) qualifies for cashback rewards
- Ecosystem governance - GNO holders can participate in governance decisions
- Value accrual - benefits from increased adoption of Gnosis Pay and ecosystem components
- Limited supply dynamics - creates positive pressure on token value
Fee Structure and Sustainability
The economic model ensures long-term viability while minimizing user costs:
- Low gas fees on Gnosis Chain compared to Ethereum mainnet
- One-time card cost of approximately €30 with minimal ongoing fees
- Zero-fee transfers between Monerium accounts
- Competitive advantage over traditional banking costs
Security Considerations
Self-Custody Responsibilities
With self-custody comes important security responsibilities:
- Private key management - implement secure storage solutions
- Backup procedures - create and securely store recovery phrases
- Phishing awareness - be vigilant against social engineering attempts
- Regular security audits - periodically review access controls
Hardware Security Enhancement
Ledger hardware wallets provide an additional security layer:
- Air-gapped signing - private keys never leave the device
- Physical verification - transactions confirmed on secure display
- Safe integration - hardware wallet added as an owner
- Recovery mechanisms - backup options if device is lost
Multi-Signature Security Model
The Safe wallet's multi-signature capabilities form the security foundation:
- Configurable thresholds - determine how many approvals are required (e.g., 2-of-3)
- Owner management - carefully select trusted additional signers
- Emergency access planning - create contingency for urgent situations
- Audited smart contracts - benefit from Safe's proven security model
Regulatory and Compliance Aspects
European Regulatory Framework
The solution operates within European regulatory requirements:
- E-money regulation compliance through Monerium's licensing
- KYC/AML implementation with privacy preservation
- PSD2 integration for secure banking connections
- MiCA regulation alignment for crypto-asset compliance
User Privacy Considerations
The system balances regulatory compliance with user privacy:
- Minimized personal data sharing - only what's legally required
- GDPR compliance for all personal information
- On-chain privacy - transactions visible but not linked to identity
- Continuous privacy enhancements in development
Future Developments and Roadmap
Announced Upcoming Features
Several enhancements are already in development:
- Metri Wallet integration - a new self-custody solution announced March 10, 2025
- Additional RWA types on Backed platform
- Enhanced cashback programs with new incentive structures
- Mobile application improvements for better user experience
Ecosystem Expansion
The broader vision includes:
- Additional chain support beyond Ethereum, Polygon, and Gnosis
- Expanded tokenized assets including more traditional financial instruments
- DeFi protocol integrations for additional yield opportunities
- Institutional solutions for businesses and organizations
Conclusion
Benefits Summary
The European Bankless Solution offers a complete alternative to traditional banking with significant advantages:
- Financial sovereignty through self-custody
- Cost savings on banking fees and international transfers
- Passive income (~7% currently) on euro-backed assets
- Cashback rewards up to 5% on card spending
- Enhanced security through multi-signature technology
- Regulatory compliance with privacy preservation
Getting Started Checklist
- Create accounts with Monerium and Safe
- Order Gnosis Pay card (€30) and consider Ledger hardware wallet (€60)
- Acquire necessary tokens: EURe, sDAI, and 2+ GNO for cashback
- Configure security settings and backup recovery phrases
- Start using the system for everyday finances and yield generation