Exodus founder: Seed phrases still need to be recorded on bar napkins, showing that the industry still has room for improvement

Digital asset service provider Exodus showcased its transformation progress in a recent summit, emphasizing that crypto self-custody has evolved from simple storage into an all-in-one, end-to-end payment infrastructure. After overcoming regulatory challenges, the company successfully went public, and is now actively pursuing acquisitions and technology integration to address the long-standing issue of payment fragmentation in the crypto industry.

Exodus listed as scheduled after going through steep turns

JP Richardson, co-founder and CEO of Exodus, said in a talk at the Omaha summit that the company learned in May 2024—right before listing on the New York Stock Exchange—that regulators had withdrawn its listing plan. At the time, Exodus had already arranged for 130 employees and friends and family to fly to Manhattan in preparation, only to be derailed at the last minute due to regulatory changes, forcing the company to operate privately for a period. JP Richardson said this experience demonstrates Exodus’s resilience in the face of political and regulatory shocks.

Several months later, benefiting from the Trump administration’s shift toward a more open stance on digital assets, Exodus finally succeeded in getting listed on the NYSE in the United States. Despite market volatility, the company remained committed to the principle that funds should be controlled by users—allowing users to store private keys on their own devices rather than depositing them with centralized institutions, ensuring the autonomy of personal assets.

JP Richardson throws out the “Bar Test” metaphor, saying the industry still has room to improve

As cryptocurrency becomes increasingly mainstream, the industry still has plenty of room to advance. Richardson floated the Bar Test concept, saying that if users still can’t easily set up wallets in social settings like a bar, and even still need to write down seed phrases on a restaurant napkin with a pen, then industry standards have not yet reached the mark.

The current financial application market is highly fragmented. On users’ phones, there are apps for banks, payments, and crypto wallets that don’t interoperate with each other. What Exodus aims to do is to integrate these scattered needs—linking digital assets through a single application, eliminating Chain Tribalism, so consumers don’t have to care whether the payment is on Solana or Ethereum.

Exodus completes acquisitions and vertically integrates its financial payment rails

Exodus recently completed its acquisitions of Monavate and Baanx, symbolizing the company’s shift from “leasing payment rails” to “owning payment rails.” These two companies have regulated card issuing and settlement infrastructure in the UK and the EU, and hold Visa and Mastercard memberships. Through an approximately $175 million acquisition plan, Exodus gained the authority to directly issue and process payment cards. Chief Financial Officer James Gernetzke said that after vertical integration, the platform supports a six-layer business structure, covering stablecoin issuance, card programs up to bank connectivity. This change allows the company to earn revenue from interchange fees (Interchange) and floating interest, replacing the profit-sharing model that previously had to be paid to third parties, thereby optimizing its profit structure.

Facing challenges brought by crypto market cycle volatility, Exodus is working to get out of a business model that relies too heavily on trading fees. Initial data in early Q1 2026 showed that revenue fell to $22.7 million, below $36 million in the same period last year, indicating a high correlation between revenue and Bitcoin price fluctuations. To break through this bottleneck, the company’s Exodus Pay has rolled out across the United States, allowing users to use stablecoins or Bitcoin BTC at any Visa payment terminal. The system is also compatible with Apple Pay, turning everyday checkout into stable processing fees and liquidity income. JP Richardson said the new measures will not only serve human users, but will also support AI agents to make autonomous payments.

This article, “Exodus founder: Seed phrases still have to be recorded on a bar napkin—showing the industry still has room to improve,” first appeared on Chain News ABMedia.