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Crypto-Friendly Banks: What You Need to Know

With the downfall of top banks in the past and in recent years, cryptocurrencies are in need of reliable banking services. Some traditional banks are still denying crypto as an asset class and are slowly trying to cope with blockchain technology and the crypto industry. When BTC was released, the whole point was that we no longer needed banks to operate with funds. In theory, it may sound perfect, but crypto and traditional banks are going to co-exist in the foreseeable future. By maintaining such a dependency, it is easier for users to use any asset that works in their favor.

Let’s delve into more details of crypto-friendly banks with a list of leading banks in this sector.

What are crypto-friendly banks?

When a bank allows standard banking services combined with the facilities of cryptocurrencies, i.e., it entails consumers with the option to hold, trade, or conduct transactions using crypto in a better, secure, and controlled banking environment, they are termed crypto-friendly banks. With the adoption of crypto-friendly banking solutions, both businesses and individuals can benefit from traditional services and developing cryptocurrency markets. It promotes great financial inclusion and flexibility amongst the funds.

These banks are more welcoming towards cryptocurrencies and offer features like trading services, integration with crypto exchanges, fiat-to-crypto conversion, and vice versa. This is just the tip of the iceberg; many advanced crypto spaces are building their constant values by offering insurance to businesses. Some Bitcoin-friendly banks provide credit and debit cards that reward cashback when paid in BTC.

Crypto-friendly banks are innovative and tech-advanced; they may develop their software or partner with fintech companies for cutting-edge solutions on crypto transfers. These banks can associate with clients worldwide without considering their location and banking relationship. This is possible by operating on a peer-to-peer network rather than over a central authority.

Like traditional banks, crypto-friendly banks are also subjected to regulatory compliances, like anti-money laundering and KYC requirements to prevent illegal activities. With these specialized services and technological capabilities, crypto-friendly banks are acting as a valuable bridge between the traditional system of banking and the emerging market of cryptocurrency.

Top 5 crypto-friendly banks

As you have the gist of crypto-friendly banks, let’s move ahead with the top 5 crypto-friendly banks that can strengthen your business in 2023 with new tech ideology in this digital world.

1. Revolut

Revolut has been considered a pioneer in financial services since its launch in 2015. However, it started supporting cryptocurrency services in 2017 and began with crypto trading. This crypto-friendly bank is not only insured by FDIC but also supports 50+ cryptocurrencies, including the top coins like BTC(Bitcoin), ETH(Ethereum), and SOL(Solana). Users can send the crypto directly to other Revolut accounts and delegate their ETH coins to third-party staking validators.

With the use of crypto debit cards, customers can settle their bills using crypto. To make these payments, the Revolut mobile app automatically converts the crypto asset to fiat currency as per their market value. Its crypto card allows you to pay for goods and services and earn up to 1% cashback over the supported currency. They plan to launch their crypto, Revcoin, later this year. The only backdrop that people see in Revolut is the expensive fee.

Significant features of Revolut are:

  • User-friendly interface for simplifying the buy and sell process of crypto, compatible with both new and experienced users.
  • Supports different kinds of crypto assets, allowing the user to buy, sell, and trade multiple cryptocurrencies.
  • Provides the flexibility to buy crypto as per the needs or set up an auto-exchange to get crypto at a specific rate.
  • It introduces a collection bundle of multiple tokens in sectors like DeFi and blockchain.
  • With its card features, users can spend their crypto on almost anything by making payments in crypto-converted fiat currency.

2. BankProv

BankProv is an old US-based bank established in 1828 under the parent organization Provident Bancorp. When digital currency was introduced, it aimed to strengthen and stabilize the crypto businesses. All the deposits are FDIC and DIF insured, providing the security that emerging businesses are looking for. The factor that separates it from its competitors is BankProv’s crypto-backed lending services. Their account holders can put their owned funds into work, earning interest by lending the coins or tokens to other traders.

Crypto businesses can streamline their products and services with the help of the extensive suite of API tooling. With a focus on enhanced security, privacy, and compliance, BankProv has become a trusted partner for institutions requiring crypto banking solutions. Its features include:

  • Seamless and integrated solution for users to buy, sell, and store cryptocurrency securely in a digital wallet.
  • Users have the flexibility to convert crypto into fiat currency so they can spend their crypto holdings conveniently.
  • Offers competitive interest rates on crypto lending, providing their clients with an opportunity to get passive income over their digital holdings.
  • Its reputation as a trusted financial institution in the traditional banking sector adds a layer of credibility to its crypto-centric services.

3. JPMorgan Chase

When talking about one of the largest and most reputable banks globally, JPMorgan Chase holds its place. It offers quite varied financial services, including traditional and investment banking. This bank has a keen interest in the crypto industry as it launched its digital currency, JPM Coins.

With its market reputation and records in the financial industry, it gained the client’s trust in its crypto banking services. In the rapidly evolving crypto landscape, this bank chose a customer-centric approach, ensuring personalized support and customized solutions for the unique needs of clients. During the downfall of top banks, JPMorgan Chase saved people’s money by taking over the funds. Some of the qualities of this bank are:

  • JPMorgan Chase provides crypto-friendly banking services to its selected exchanges and digital asset firms for streamlined processing of transactions.
  • The advanced risk management system of this bank and its expertise in compliance allow it to navigate the regulatory landscape and provide a secure environment for crypto activities.
  • Offers comprehensive institutional-grade research with market insights on crypto, helping its clients to make informed decisions regarding their investments.
  • As the bank is integrated with the major crypto exchanges, there is seamless connectivity and real-time execution for the trade.

4. Wirex

All the other platforms started as traditional banks and slowly moved toward the acceptance of cryptocurrency. Wirex set its foot in the market as a leading crypto bank from day one, offering a comprehensive platform for crypto products and services. It is a complete trading platform that supports 250 digital assets and hosts a cross-chain bridge that helps users shift tokens across various blockchain networks.

Its crypto debit cards have some great features, like it provides a massive 8% cash back over the purchases made with cryptocurrency. Wirex account offers good returns on stacking services and provides the users with a crypto wallet that supports NFTs and lets you interact with DeFi apps. This crypto-friendly bank has certain unique takes like:

  • Build on Web3 with a free account and secured debit card services for on and off-ramping of everyday crypto needs.
  • The global fee on foreign exchange is 0% with the Wirex card and exclusive crypto rewards over its use.
  • Allows users to utilize the source of passive income with staking and save money by accessing institutional asset pricing.
  • Get free withdrawals from ATMs without any monthly fee. Instant cross-chain bridge for stablecoins and crypto tokens without any additional charges.

5. Juno

A fintech company that combines cryptocurrency and traditional finance into a single account. Juno is a functional bank account for fiat currency but is also integrated with crypto wallets. Users can seamlessly connect their wallet with the Juno app and off-ramp their assets into a safe and FDIC-insured account. Supports a huge part of crypto assets and stablecoin like USDC; users can fund their checking account with these currencies on multiple blockchains.

Users can earn high-yield interest on their crypto assets by staking and liquidity mining; its crypto debit card allows customers to use digital currency for making payments or getting cash from ATMs. You will also earn a cashback of 5% on purchases. Other than these, there are certain additional features too:

  • They introduced an innovative savings account called the Smart Treasury that provides attractive rewards on your stablecoin holdings.
  • Uses advanced technology in finance, such as AI tech and machine learning algorithms, to provide personalized insights on financial recommendations.
  • Offers a well-designed suite of financial services that includes lending, borrowing, and asset management that fulfills the needs of both individuals and institutional clients.
  • Fostering strategic partnerships with leading blockchain projects and financial platforms to enhance product offerings and expand reach in the crypto banking space.

Crypto banking vs. crypto-friendly banking

For a newbie in the financial market, crypto banking solutions and crypto-friendly banking solutions appear to be similar terminology, but there are many significant differences. Before stepping in, one must have a clear understanding of where to invest.

This bifurcated table will provide you with more clarity over these terminologies.

Features Crypto banking Crypto friendly banking
Define A provision of banking services centric to cryptocurrency. Traditional banking is integrated with cryptocurrencies and works parallelly.
Scope Limited to only crypto-regulated assets and services. It is inclusive of traditional banking services and cryptocurrency too.
Offers Custodial wallets, crypto trading platforms, and payment solutions using crypto. Integration with crypto exchanges, fiat to crypto conversions, linking of crypto wallet with traditional bank account.
Targeted audience Only crypto users and businesses. Both crypto and traditional banking customers.
Key focus Primary focus on operating cryptocurrency. Banking services with crypto integration.
Accessibility Standalone platform dedicated toward cryptocurrency. Integrated amongst banks and crypto.
Regulation Subjected to demographic crypto regulations. Subject to banking regulations and crypto compliances.
Integration Independent and does not integrate with others. Integrated with the existing infrastructure of banks.

 

Pros and cons of crypto-friendly banks

Every financial service comes with some kinds of benefits and flaws. Crypto-friendly banks are also incorporated with the same. Let’s see some of the pros and cons associated with it.

Pros

  • Makes crypto easy: Crypto environments can be complicated for beginners. While self-custody is a pillar of blockchain technology, not everyone is ready to work with it. Here, crypto-friendly banks can allow customers to access these industries by providing an experience similar to traditional banking systems.
  • Seamless off-ramping: Many traditional banks are restrictive when it comes to the withdrawal of fiat currency using a crypto exchange. With crypto-friendly banks, exiting a market becomes more manageable and releases your profits (or losses) too.
  • Supports firms and startups: For insurance and operating costs, the crypto business still needs a presence in traditional finance. For blockchain and fintech companies, crypto payment banks provide everything they need to comply with the interactions. Businesses can invest in their firms or any solid startup using cryptocurrency as an indirect method.
  • Accessibility of mobile apps: The Crypto market is never on a pause; hence, accessing your account on the go is quite important. This can be possible with an intuitive mobile app, which is provided by most of the crypto-friendly banks. These apps are available for Android and IOS platforms, making it easy to access the market in real-time and make a profit out of it.

Cons

  • Unreliable history: Crypto-friendly banks generally have high exposure to volatile digital assets. This can cause them to put their reserves under strains that can lead to bankruptcy or insolvencies, which eventually ends as a bank failure similar to Silvergate and Signature Bank.
  • High fee on transactions: The fundamental purpose behind the crypto-friendly bank is to make cryptocurrency easier. This means that they charge a premium sum on crypto-related services, which are generally more expensive than wallet transactions.
  • Fewer options as of DeFi: The functionality of a crypto-friendly bank account is limited beyond trading and HODLing. The DeFi platform offers far more utilities and empowers users’ funds. Crypto-friendly banks don’t have infinite possible ways to utilize the currency.

What does the future hold for crypto-friendly banks?

The future of these banks is closely tied to the growth and adoption of cryptocurrencies in the financial markets. When more and more people begin to use crypto as an everyday transaction, the demand for crypto-friendly banks is likely to rise. It is also dependent on the regulatory landscape that is continuously evolving.

There are chances that crypto-friendly banks may face scrutiny from the regulatory bodies and may need to address themselves with those changes. With the increasing competition among traditional banks, more banks are ready to offer crypto-related services. Hence, keeping all the long-term outlooks, crypto-friendly banks remain positive and helpful to this ever-changing economy.

Do all banks accept cryptocurrency?

No, all banks do not accept cryptocurrency. Even some traditional banks restrict the accounts that show crypto-related transactions.

Yes, the property of crypto that is publicly available makes it trackable for banks. It is a poor method for fraudulent and illegal transactions, and that is keeping the traditional banks on the back foot.

There are a lot of crypto-friendly banks, and each represents its significance with unique features. In the world of finance, Revolut is currently considered one of the best crypto-friendly banks.

Speed Team

Comment (1)

  1. Leite

    3 weeks ago

    That is the best blog for anybody who needs to seek out out about this topic. You notice a lot its virtually hard to argue with you (not that I really would want…HaHa). You positively put a new spin on a subject thats been written about for years. Great stuff, just nice!

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