From Revolut to SoFi, these top financial institutions are banking on crypto!
On March 8, 2023, Silvergate, the U.S.’s top cryptocurrency bank announced its plans for liquidation. The bank had been severely affected by the FTX bankruptcy in November last year with FTX formerly being one of its biggest customers. Similarly, another U.S.-based crypto bank Signature has been shut down by U.S.-state regulators. These two banks held US$11 billion and US$114 billion in cryptocurrency assets respectively. Their erasure from the crypto-banking scene will leave a vacuum that desperately needs to be filled by other banking organizations.
Naturally, the customers of these banks are on the hunt for other crypto-friendly banking institutions to rely on. To make that process easier, we have compiled a list of the top crypto-friendly banks and their unique offerings.
Revolut
Launched in 2015, Revolut is a U.K.-based financial services company. It expanded to cryptocurrency trading in 2017. Since then, the company has allowed people to make transactions in cryptocurrency through Revolut debit cards. Customers can also easily buy and sell cryptocurrency through the Revolut application. They can even make off-chain transactions with other customers, helping them transfer crypto quicker and without paying hefty transaction charges. In February 2023, the company announced that it will allow customers to stake their cryptocurrency holdings for a reward of up to 11.65% annual percentage yield.
Quontic Bank
Quontic Bank is a U.S.-based digital banking company that provides customers the option of opening checking, savings, money market (a higher interest deposit account) and certificate of deposit (or savings) accounts. The company was founded in 2009, and, in 2020, it created a unique cryptocurrency offering by creating a Bitcoin rewards checking account. As a part of this account, the customer stands to earn 1.5% Bitcoin cashback on eligible debit card purchases. The account also comes with a nationwide, fee-free ATM network and online banking tools.
Customers can even exchange their Bitcoin rewards for cash via the Bitcoin company NYDIG, if they are willing to pay a 2% charge. The only catch is that the account is only available in certain U.S. states, including Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut and Delaware, to name a few.
Wirex
Wirex is a web 3 application that allows its customers to seamlessly manage both their cryptocurrency and fiat currency holdings. The company doesn’t explicitly refer to itself as a bank but rather as a “banking alternative built for web 3”. According to Wirex’s website, it provides free cryptocurrency wallets and a debit card for users to spend their crypto. The company provides customers with up to 8% cashback on every transaction they make through Wirex debit cards. In February this year, Wirex partnered with Visa which allowed it to extend its crypto debit card services to 40 different countries.
Bankprov
Bankprov is a banking-as-a-service (BaaS) provider that caters specifically to businesses in the crypto sector. It first started off as a traditional bank way back in 1828 as the Provident Bank and, in 2021, it decided to make the switch to provide crypto companies with banking services.
It provides its customers with the ability to process crypto transactions and even credit backed by crypto funds. Bankprov’s customers can also avail of Bitcoin ATM services and API banking (digital banking service) as well as 24×7 transactions between Bankprov clients.
Juno
Juno is a financial technology company that facilitates seamless investment, earning and spending of crypto and cash all in one spot. The company came into existence in 2019 and has since amassed a wide audience in the U.S. that takes their salaries in cryptocurrencies and further invests them in crypto assets. Customers can use this crypto in their day-to-day payments via Mastercard-powered debit cards. The company offers a 5% interest rate on checking accounts and 5% cashback on select transactions. Juno uses Allpoint or a MoneyPass for its ATM network and is also compatible with payment applications like Apple Pay, Google Pay and Samsung Pay.
SoFi
SoFi is a finance company that works both as a bank and a crypto exchange. The company prioritizes security and thus works in a close-loop system. This means that the company doesn’t allow people to send or receive crypto from people who don’t use the SoFi app. SoFi charges a 1.25% fee for every crypto trade and provides users with a US$10 reward when they trade at least US$10 worth.
There you have it. These are the top six banks that are leading the way in providing crypto-friendly banking services to their customers. As the crypto industry continues to grow and evolve, it is important for banks to adapt and offer services that cater to the unique needs of cryptocurrency investors. Each of these banks has distinct offerings, from Revolut’s crypto debit cards and off-chain transactions to Quontic Bank’s Bitcoin rewards checking account. As the industry continues to expand, we can expect to see more banks follow suit and offer crypto-friendly services to their customers.
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