DeFi Trading App Dharma Now Connects Directly to US Bank Accounts

The startup for trading in decentralized finance (DeFi), Dharma, has now enabled automated clearing house (ACH) purchases in 10 U.S. states.

ACH enables direct transfers from U.S. bank accounts so that users can go straight from holdings in U.S. currencies to cryptocurrencies. Purchasing tokens from a bank account incurs a 1.5% fee and there’s a limit of $25,000 in purchases per week.

With the new feature, Dharma is betting it can stand out in the crypto space by making accessing blockchains easier, in much the same way Coinbase did.

“Making an investment in DeFi has, up until now, been a bifurcated and highly technical process. Now, it’s as easy as downloading an app and connecting your bank account,” Dharma CEO Nadav Hollander said in a press release.

Dharma will offer all the assets available on Uniswap, covering gas fees for all users. Users can also trade between cryptocurrencies within the Dharma app.

When announcing its funding round in February 2019, the team was focused on lending over Ethereum. It shifted to stablecoin-based savings in Summer 2019. It then introduced trading in July.

Purchases from bank accounts are available in the following U.S. states: Arizona, California, Georgia, Massachusetts, Michigan, Montana, Pennsylvania, Texas, Virginia and Washington.

“Our goal in building ‘the Robinhood of crypto’ is to bridge the final gap between these blossoming markets and the millions of individuals who will want to tap into them as they gain popularity and mindshare,” Hollander said.

The move comes on the heels of a Uniswap governance proposal put forth by Dharma being defeated over the weekend.