Following the demise of long-term crypto-friendly institutions such as Silvergate and Signature Bank earlier this year, cryptocurrency enthusiasts have required secure banking services.
Traditional banks still have the option of picking a bone by using crypto as an investment class. Making a mark in the sand, a few have shut down bank accounts because the account holders have transferred funds to a cryptocurrency exchange.
Financial institutions are gradually warming up to Blockchain technology, and crypto is gaining traction and has been able to grow despite this. However, crypto businesses require reliable banking systems that can meet their requirements and store their currency in fiat.
But wait a second; I thought that the entire point of Bitcoin (BTC) was to ensure that there were no banks!
In the theory of things, it is true. Although this may be the case with Maxis, the fact is that both crypto assets and conventional financial products will exist for a long time. he presence of a crypto-friendly bank allows you to easily off-ramp crypto assets when they decide to get out of the market.
What Makes a Bank Crypto-Friendly?
The name implies that crypto-friendly banks are more tolerant and accommodating of crypto and digital currency businesses. They may offer crypto trading services, or assist in integrating with crypto exchanges such as Binance and Kraken.
This is only the tip of the Iceberg. Some banks that are rethinking their business models are creating an image for themselves in the crypto world by providing insurance to cryptocurrency-related companies. Certain Bitcoin-friendly banks provide debit and credit cards that provide cashback on purchases made in BTC.
Advantages and Disadvantages of Crypto-Friendly Banks
Before we get to our top list of the best banks that support crypto, we’ll quickly go over their advantages and disadvantages.
✅ They make crypto a breeze. The crypto world can be a bit tangled and confusing for those who aren’t familiar with it. While self-custody is an essential aspect of blockchain technology, it’s not suitable for everyone. Banks that are crypto-friendly can expose their clients to blockchain technology in a familiar way. banking systems.
✅ Off-ramping is stress-free traditional banks are usually restricted when it is time to transfer fiat currency into your bank account through an exchange for cryptocurrency. The banks that are crypto-friendly allow you to exit the market more easily and help you realize your gains (or losses).
✅ Help startups and crypto-related companies Businesses in the crypto space still require a place in the traditional financial system to cover operating and insurance costs. The most trustworthy banks that are crypto-friendly offer fintech and blockchain companies everything they require to be compliant in the actual world.’
✅ Applications for smartphones The cryptocurrency market is never quiet; therefore, having access to your account even when travelling is crucial. Many banks that are crypto-friendly have user-friendly mobile apps that are available for Android and iOS that allow you to monitor the market in real-time and move quickly.
❌ In the past, reliability has been questioned. The unfortunate fact is that banks that are crypto-friendly generally have a large risk of exposure to volatile digital currencies. Their reserves are at risk, which could result in bankruptcy and insolvencies, as we’ve witnessed in the cases of Silvergate and Signature Bank.
❌ Charges for crypto transactions are high. The purpose of crypto-friendly banks is to make it easier for you to use cryptocurrency. This means they charge extra for cryptocurrency-related services, which are typically more expensive than the fees you pay with your own cryptocurrency wallet.
❌ There are fewer options than DeFi. The function of a crypto-friendly bank account is a bit limited to cryptocurrency trading and hodling. The DeFi account offers greater utility and allows customers to put their money to work in an infinite number of ways, such as staking or yield farming, as well as lending.
Top Crypto-Friendly Banks
If you’re in search of the best-crypto-friendly-banks-to-use-in-2023 then you’re at the right spot! This list outlines the top banks that support cryptocurrency across various areas, which include traditional banks, banking for business, and personal a accounts
The fact that Revolut is at the top of the list ought to come as no surprise to anybody. Since its inception at the end of 2015, the online bank has been regarded as the pioneer of contemporary financial services. Revolut’s cryptocurrency offerings and assistance aren’t an exception.
It’s not just that Revolut is FDIC-insured and regulated, but the trading platform is also able to support over 50 cryptocurrencies, which include the top ones like Bitcoin, Ethereum (ETH), and Solana (SOL). Customers can transfer cryptocurrencies directly to other Revolut bank accounts and transfer their Ether to third-party staking validaters.
Customers from countries that are eligible can also pay for their bills in cryptocurrency using credit cards. To make payments using crypto, the Revolut mobile app converts crypto assets in selected categories to their current value using fiat currencies.
If that’s not enough, the Revolut crypto card lets customers pay for services and goods by using crypto and earn as much as 1 percent cash back on any accepted cryptocurrency. Revolut is planning to introduce its own cryptocurrency, Revcoin, later this year.
If Revolut had a flaw in its crypto offerings, it would be the high cost of fees. For a typical customer, every crypto-related transaction is subject to a 1.99 percent cost.
- It supports trading in cryptocurrency with more than 50 crypto assets.
- The card allows customers to spend cryptocurrency in stores around the world with cashback.
- Provides delegated staking services.
- Costs are high.
Wirex differs from other “best crypto-friendly bank rivals. While the other platforms began their journey as traditional banks and gradually made the transition to accepting cryptocurrency, Wirex set out to be the world’s most renowned crypto-bank from day one.
The platform provides a broad array of services and products for crypto. It’s not only Wirex’s entire trading platform that can support more than 37 crypto currencies, but it also provides an inter-chain bridge that helps users transfer tokens across various blockchain networks.
The benefits don’t end there. Wirex’s cryptocurrency debit card offers many of the best advantages in the industry, including a whopping 8% cashback for purchases made using cryptocurrency. It also offers ample staking options and an crypto wallet that can support NFTs as well as allowing users to connect with DeFi DApps.
- A crypto-first banking approach.
- A wide-ranging trading platform as well as a cross-chain bridge.
- Staking and cashback reward services.
- NFT as well as dApp support.
Juno is a fintech business that aims to integrate traditional finance and cryptocurrency into a single, effortless checking account. In addition to being a functional bank account that accepts fiat currencies, such as USD, it also connects to cryptocurrency wallets. Users are able to connect their wallets to the Juno application and then off-ramp their crypto assets into an FDIC-insured bank account in a matter of just a few seconds.
The app can support a broad array of crypto assets, including the most popular stablecoins such as USDC. Customers can pay for their checking accounts using USDC on a variety of blockchains, such as Polygon, Arbitrum, and Optimism.
One great benefit that makes Juno one of the most bitcoin-friendly banks is the fact that it allows you to instantly convert a portion of your paychecks that you receive into cryptocurrency.
The Juno cryptocurrency debit card allows users to use digital assets to make transactions or withdraw cash from ATMs like a normal card. Additionally, cardholders are eligible to receive as much as 5% cashback on purchases.
- The smooth transition from crypto to fiat and fiat-to-crypto is smooth.
- Automatically convert cash payments into cryptocurrency.
- A wide range of cryptocurrencies are supported.
- The Crypto debit cards let you use cryptocurrency anywhere.
BankProv is an old-fashioned U.S. Bank with over 200 years of banking experience. Although many of the banks listed on this list focus on customers who are primarily personal, BankProv aims to strengthen crypto businesses.
Crypto-related startups can rest in peace of mind when they bank through BankProv. The deposits we make are FDIC and DIF insured, which gives entrepreneurs in the early stages the protection they require to pursue their goals.
Another thing that separates BankProv from its rivals is its extensive lending service. Customers can utilize their digital assets and earn interest by lending their money to other traders.
In addition, BankProv also offers a vast array of API tools that help businesses in the crypto industry improve their services and products.
- The most crypto-friendly bank that can be used for businesses that use blockchain technology.
- Supports lending with cryptocurrency.
- All deposits are covered through FIDC and DIF.
5. Ally Bank
Moving away from banks that allow the trading of cryptocurrency, Ally Bank is an excellent example of a conventional bank taking steps to become crypto-friendly. Ally Bank allows customers to invest in crypto-exposure funds, such as The Grayscale Bitcoin Trust.
Although customers aren’t able to buy or sell cryptocurrency directly through Ally Bank, the firm’s collaboration with Coinbase lets customers easily integrate their accounts with the cryptocurrency exchange. With this integration, users can enjoy Coinbase’s nimble cryptocurrency trading platform and also benefit from an easier off-ramp.
- Customers can put money into hedge funds as well as companies that have exposure to crypto.
- Doesn’t support trading in cryptocurrency directly but rather integrates with Coinbase.
- Quick and efficient on/off ramp.
The line between traditional banks and a bank that is crypto-friendly is a challenge, and Quontic has the ability to navigate the line with ease. Quontic provides all the services you would expect from a traditional bank, such as home savings and loans, with the added benefit of a Bitcoin reward checking account.
Quontic’s 1.5 percent cash back rate may seem small when compared to other companies on this list. Yet, Quontic offers up to 1.5 percent cash back in Bitcoin on every purchase, not just transactions made with cryptocurrency. This type of cashback is more likely to last and doesn’t entice the user to invest in their cryptocurrency holdings.
- Traditional banks are testing the cryptocurrency waters.
- Variety in traditional bank services.
- Bitcoin reward checking accounts..On the Flipside
While the top crypto-friendly banks provide a wide array of fantastic features, the array of possibilities offered by DeFi is much more extensive. It is important to remember that the concept of cryptocurrency was created to help people gain control of their money by self-custody.
While banks that are crypto-friendly are unlikely to refuse access to your accounts However, you should never forget that the motto is “Not your keys, but the crypto.’
Why This Matters
The crypto-friendly banks increase the accessibility of digital currency and help boost widespread adoption and growth in the industry. Finding banks that are compatible with your requirements could assist you in earning cryptocurrency with cash-back or other payments or increase the size of your crypto business.
Frequently Asked Questions (FAQs)
Why can’t my bank let me purchase Bitcoin?
Banks are concerned about the possibility that Bitcoin and other digital currencies are being used to carry out illegal or fraudulent actions. These concerns regarding digital assets have prompted some banks to stop their customers from purchasing Bitcoin.
Are banks able to track the crypto market?
It is true that cryptocurrency is, by its very nature, created to be easily verified and traceable. This is why cryptocurrency is an unsuitable method to conduct fraud or illegal transactions, that traditional banks believe is a reason not to use cryptocurrency.
Can all bank branches accept crypto?
There are some banks that do not accept crypto. Certain traditional banks have been recognized for putting restrictions on accounts that have crypto-related transactions.
Is Revolut a cryptocurrency-friendly bank?
Yes, Revolut is one of the best crypto-friendly banks in the world of finance and offers a wealth of cryptocurrency-related products and services.