CoinClear

Metal Pay (Proton / Metal)

4.2/10

Crypto payments + banking app on its own fee-less blockchain — ambitious convergence of crypto and banking that hasn't broken through despite years of effort.

Updated: February 16, 2026AI Model: claude-4-opusVersion 1

Overview

Metal Pay was created by Metallicus (founded by Marshall Hayner) as a consumer application for buying, selling, and sending cryptocurrency. The project expanded to build the Proton blockchain — a fee-less, identity-verified layer-1 designed specifically for payments and financial applications. In recent years, the Proton blockchain was rebranded to Metal blockchain, consolidating the brand.

The vision is comprehensive: a blockchain-native banking and payments ecosystem where users have verified identities on-chain (satisfying KYC requirements), transactions are fee-less (no gas costs), and the platform provides both crypto trading and traditional banking services (FDIC-insured bank accounts, direct deposit, debit cards) through partnerships with banking institutions.

The identity-on-chain approach is notable: Metal/Proton accounts are human-readable (like @username) and can be linked to verified identity, making the blockchain usable for regulated financial services without the pseudonymity that regulators find problematic. This positions Metal uniquely at the intersection of blockchain efficiency and regulatory compliance.

However, the project has struggled to gain traction. The Metal Pay app has a small user base, the Metal blockchain ecosystem is minimal, and the banking features have faced regulatory hurdles. The convergence of crypto and banking is appealing conceptually but extraordinarily difficult to execute in a regulated environment.

Technology

Metal Blockchain

Metal blockchain (formerly Proton) is built on EOSIO/Antelope technology, providing:

  • Fee-less transactions: Users don't pay gas fees; resource costs are handled by the chain's resource model.
  • Human-readable accounts: Accounts use @username format rather than hexadecimal addresses.
  • On-chain identity (WebAuth): Users can verify identity on-chain, enabling KYC-compliant blockchain applications.
  • Fast finality: Sub-second transaction finality, suitable for payment applications.

The fee-less model removes the UX friction of gas fees, which is a genuine advantage for payment use cases where users expect transactions to be free (like Venmo or CashApp).

WebAuth Identity

WebAuth is Metal's on-chain identity verification system. Users verify their identity through the Metal Pay app (standard KYC process), and this verification is stored on-chain. Smart contracts can then check identity verification status, enabling compliant DeFi applications (lending, borrowing, exchange) that satisfy regulatory requirements.

Metal Pay App

The consumer app provides:

  • Buy/sell 50+ cryptocurrencies
  • Send crypto to @usernames instantly
  • FDIC-insured bank account (through banking partner)
  • Direct deposit and bill pay
  • Debit card

Proton DEX (Metal DEX)

An on-chain order book DEX on the Metal blockchain, providing fee-less trading for users with verified identities. The order book model provides better price execution for certain trade types compared to AMMs.

Security

Chain Security

Metal blockchain uses DPoS (Delegated Proof of Stake) with 21 block producers, inherited from the EOSIO architecture. The 21-BP model provides fast finality but limited decentralization. Block producers are elected by XPR (now MTL) token holders.

Banking Security

FDIC-insured bank accounts are secured through the banking partner (not by Metallicus directly). The FDIC insurance provides standard consumer protection up to $250,000. However, the crypto assets held on Metal Pay are not FDIC insured.

Identity Security

On-chain identity data must be handled carefully — linking real-world identity to blockchain accounts creates privacy concerns if identity data is exposed. Metal's implementation aims to store verification status (yes/no) on-chain without exposing underlying personal data.

Smart Contract Risk

DeFi applications on Metal blockchain carry standard smart contract risk. The ecosystem is small, and contracts may have limited audit coverage compared to Ethereum DeFi.

Adoption

User Base

Metal Pay's user base is small — likely in the tens of thousands of active users. This is tiny compared to mainstream crypto apps (Coinbase: 100M+ users, Cash App: 50M+ users) or even mid-tier crypto apps.

Banking Integration Challenge

The promise of crypto + banking in one app is appealing but faces practical challenges. Banking partnerships are complex, regulated, and can be terminated. The crypto-banking convergence space (also attempted by projects like Juno, Brale) has seen frequent partnership disruptions as traditional banks become wary of crypto-associated compliance risk.

Metal Blockchain Ecosystem

The Metal blockchain ecosystem is very small. Few DeFi protocols, NFT projects, or dApps have deployed on Metal. The identity-verified chain concept is interesting but hasn't attracted the developer community that established L1s (Ethereum, Solana) enjoy.

Competitive Landscape

Metal Pay competes with well-funded crypto-banking convergence products (Coinbase, Cash App's Bitcoin feature, PayPal Crypto) and fintech apps (Revolut, SoFi). The competitive advantage of fee-less transactions and on-chain identity is not sufficient to overcome the distribution and brand advantages of these incumbents.

Decentralization

DPoS Limitations

The 21 block producer model is one of the most centralized consensus mechanisms in use. While BP election is theoretically democratic (token holders vote), in practice DPoS networks tend toward oligarchic BP sets with limited rotation. This is a well-known limitation inherited from EOS.

Centralized Application Layer

Metal Pay is a centralized application operated by Metallicus. The app, KYC process, banking partnerships, and customer support are entirely centralized. The blockchain provides settlement and identity infrastructure, but the user-facing product is a traditional centralized service.

Token Governance

MTL (formerly XPR) token holders can vote for block producers and participate in governance. Governance participation is low, and the core team effectively controls the development roadmap.

Tokenomics

MTL Token

MTL (Metal token, formerly XPR/Proton) is the native token of the Metal blockchain. It's used for BP staking and voting, DeFi participation, and governance. The total supply and distribution have evolved through the Proton-to-Metal rebrand and token migration.

Revenue Model

Metal Pay generates revenue through trading fees, payment processing, and banking service fees. Whether this revenue is sufficient to sustain operations and token value accrual depends on user growth — which has been slow.

Token Utility

MTL's utility is tied to Metal blockchain activity — DeFi, trading, staking. With a small ecosystem, actual token utility demand is limited. The token's value is primarily speculative.

Risk Factors

  • Tiny user base: Small and slow-growing compared to crypto and fintech competitors.
  • Banking partner risk: Banking partnerships in crypto are fragile and can be terminated.
  • Regulatory complexity: Combining crypto and banking invites regulatory scrutiny from multiple agencies.
  • DPoS centralization: 21 block producers provide limited decentralization.
  • Small ecosystem: Minimal dApp and DeFi ecosystem on Metal blockchain.
  • Competition: Major platforms (Coinbase, PayPal, Cash App) offer crypto + banking with far greater distribution.
  • Rebrand confusion: Proton to Metal rebrand may have caused brand confusion and SEO challenges.

Conclusion

Metal Pay / Metal blockchain presents an intellectually coherent vision: fee-less, identity-verified blockchain infrastructure with a consumer banking app on top. The WebAuth identity system, human-readable accounts, and fee-less transactions solve real UX problems. The banking integration provides a bridge between crypto and traditional finance.

Execution has been the challenge. The user base is small, the blockchain ecosystem is minimal, and the crypto-banking convergence space is littered with failed attempts. Competing against Coinbase, PayPal, and Cash App for the "crypto + banking" market is a Herculean task for a small team. The technology works but hasn't found the distribution and market fit needed for growth.

The 4.2 score reflects an interesting technical vision and legitimate approach, significantly constrained by limited adoption, DPoS centralization concerns, and the extreme competitive intensity of the crypto-banking convergence market.

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