Vast Bank is the first state-approved bank in the U.S. to offer the ability to buy, sell and store cryptocurrencies directly from a checking account. Following in the footsteps of big banks like JPMorgan & Co, retail banks are also venturing into the space.
Customers of Vast Bank will be able to trade cryptocurrencies directly from an FDIC-insured payment account, according to an announcement. The previously unseen opportunity to buy, sell and hold digital assets within a retail bank has been approved by the Office of the Comptroller of the Curre (OCC) and discussed with the Federal Reserve, Forbes reported.
Vast Bank works with Coinbase and SAP
Vast Bank is a 39-year-old family-owned national bank that believes new technology will help the customer and greatly change the financial services industry. They are trying to achieve this in a way that was not possible before in the financial services industry.
"This is great news for the cryptocurrency community. It has historically been difficult for digital asset companies to even get banking services, much less to have a bank that provides digital asset services. I view this as a step in the right direction, and I suspect that we will see more banking/digital asset ventures in the future.” - Judith Rinearson, Partner at K&L Gates
This launch was made possible by strong partners. SAP, at least historically, is considered one of the largest companies in the world providing various services to the financial services industry. Crypto exchange Coinbase came into the fold through a FinTech contact. Together, they think it's a good opportunity to serve diverse customer segments and types. Coinbase has been helping Vast encourage people to talk about custody options since February.
Easy custody of cryptocurrencies
State-regulated banks could serve to bring cryptocurrencies among more people. Not everyone has the time or interest to learn for themselves how best to buy and store digital assets. Those who are curious about cryptocurrencies but prefer to work with a bank or an intermediary are being addressed by this service.
"There's lots of different customers out there that may want to control everything and have their own wallet, their own passcodes, and then there are those who are crypto curious and may prefer to work with a bank or an intermediary, just because they don't quite understand." - Brad Scrivner, CEO Vast Bank N.V.
Scrivner attributed the agile shift to cryptocurrency offerings to meeting current customer needs, but also to staying relevant with an eye on future demand. He also presented the bank's shareholders with specific crypto use cases, such as cross-border payments with near-instant final settlement and 24/7 foreign exchange trading. The CEO is certain that a national bank is the best place to trade cryptocurrencies.
Customer interest in cryptocurrencies
An internal survey at Vast found that more than 60 percent of its customers are interested in Bitcoin and other cryptocurrencies. They also indicated that they want a bank that is involved in the custody of cryptocurrencies. In addition to Bitcoin, Ethereum, Cardano, Filecoin, Litecoin, Orchid, Algorand and Bitcoin Cash are among the eight cryptocurrencies that can be purchased directly.
Vast Bank wants to appeal to early supporters of the crypto scene in particular. There are a lot of new wealthy people who would like to put their assets on their computer in the care of a traditional company so they can sleep better at night, Scrivner said. It's the equivalent of having the house, with the money under the mattress, burn down. That's why the CEO thinks there's so much interest in a national bank. People are tired of burying their money in the backyard and are afraid it will be stolen.
