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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.
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.
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.
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:
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:
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:
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:
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:
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. |
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.
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.
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.
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