Top 8 Crypto-Friendly Banks To Consider

The widespread popularity of cryptocurrency has made it necessary for many financial institutions to adopt cryptocurrency solutions to satisfy their customers’ needs. For those interested in buying or selling crypto, there’s no shortage of crypto-friendly banks available. Many major banks have added crypto solutions into their service offerings. However, not all crypto-friendly banks are created equal. If you’re looking for a reputable bank that meets your criteria, this guide will help. We’ll explore eight of the most crypto-friendly banks and explain the different benefits that each one offers, so you can make an informed choice.

The Relationship Between Banks and Crypto: What To Know

Initially, the relationship between crypto and banks was turbulent, as crypto had never held a space within the financial industry and came with many unknowns. Banks have existed for countless centuries and have become a pillar of organized societies, especially in first-world countries like the USA, Britain, and Japan. However, after a massive financial collapse in 2008, many people became frustrated with the federal government’s control over fiat currency, as well as the banks that serve as intermediaries. This led to the creation of the first cryptocurrency, Bitcoin, in 2009. Since then, thousands of cryptocurrencies have been developed. Initially, cryptocurrency was seen as an antithesis to traditional banking instead of an alternative. For years, worldwide skepticism marked the crypto industry. Some countries outlawed the use of crypto, while others enforced strong crypto regulations. Fortunately, none of these developments have stopped the rising trend of the crypto market. Over time more mainstream banks began to embrace crypto — now offering crypto-related services and exploring ways to incorporate cryptocurrency and blockchain into their existing services. With crypto trends and news fluctuating every day, one thing remains certain: Financial institutions are beginning to accept that crypto is a legitimate asset class.

What Makes a Bank Crypto-Friendly?

“Crypto-friendly” can be a loose term nowadays. Some banks allow crypto payments but may be against the idea of incorporating cryptocurrencies into their businesses. The standard characteristics of a crypto-friendly bank include:

• Cryptocurrency trading: Some major banks have begun allowing people to trade cryptocurrencies from their bank accounts. Other banks have become exclusively associated with the crypto market, such as Revolut. If any bank makes it easy to trade digital currency, it ultimately helps increase adoption and interest — which furthers crypto’s reach and influence.
• Custody: Crypto custody refers to the storage of cryptocurrencies and crypto assets. A financial institution that offers hot or cold crypto wallets counts as a crypto-friendly bank.
• Fiat-to-crypto conversions: Does your bank make it easy to convert your fiat money to crypto and vice versa? Crypto-friendly banks offer seamless conversion between fiat and cryptocurrency.

To embrace the opportunity to incorporate crypto-based services into your business model, turn to AlphaPoint. To see how traditional financial services can integrate seamlessly with digital assets, take a look at AlphaPoint’s white-label solutions.

8 of the Top Crypto-Friendly Banks To Check Out

Whether you’re starting a new crypto business or just want to explore crypto as a hobby, it’s important to choose the right crypto-friendly bank. Here are eight of the best crypto-friendly banks to consider.

1. Revolut

Revolut is a global neobank based in London, England. Founded in 2015, this crypto-friendly bank was one of the first to offer an in-house cryptocurrency exchange. Account holders can buy, sell, and exchange the world’s top cryptocurrencies, from Bitcoin (BTC) to Ethereum (ETH).Revolut also offers real-time, accurate cryptocurrency market data so investors can make data-driven crypto trading decisions. However, there are some notable drawbacks to consider. For example, Revolut has high fees and offers limited control over user cryptocurrencies. However, they also offer an easy-to-use crypto exchange for both beginners and experienced traders.

2. Nubank

Nubank is a neobank located in São Paulo, Brazil. It’s the largest fintech bank in Latin America, serving more than 80 million customers. Much like other banks in Central America, Nubank strives to accommodate crypto investors. Specifically, Nubank offers a cryptocurrency loyalty program for its Brazilian users. Customers can collect, store, and redeem their Nucoins for worthwhile prizes. However, this program is only available for customers located in Brazil.

3. Chase Bank

JPMorgan Chase Bank is one of the oldest banks in the United States. It’s also one of America’s Big Four banks and a global financial powerhouse. Recently, Chase has rolled out new crypto services that allow Chase customers to invest in crypto and pay their mortgages, loans, and credit card bills using cryptocurrencies, including:

• Bitcoin
• Ethereum
• Shiba Inu
• XRP
• Dogecoin
• Binance Coin
• Tether
• USD Coin

4. BNP Paribas Bank

BNP Paribas is a popular French multinational bank. Although the bank was founded in 2000, its origins date back more than 200 years. Recently, the bank announced plans to enter the crypto custody space. To do so, they are partnering with Metaco and Fireblocks, two crypto custody specialists. Through these partnerships, they will begin work on adding digital asset storage to the French bank’s infrastructure.

5. Juno

As a financial technology company that’s a proponent of financial inclusion, Juno is a modern financial interface offering the features of a traditional bank, even though it’s not an actual bank. Juno offers complete synchrony with cryptocurrencies, offering an exchange for users to buy and sell all from one platform. Customers can easily deposit and withdraw their earnings, have full control over their digital assets, and take advantage of an end-to-end crypto ramp to easily convert their money.

6. Mercury

Mercury is a banking solution for startups. They offer business checking accounts, credit cards, and online account access for their customers. Additionally, users can send money to crypto exchanges with no added fees or restrictions. In fact, Mercury doesn’t have any restrictions or regulations concerning crypto transactions.

7. Wirex

Wirex is a Web3 money mobile app. This card gives you complete freedom to use your crypto in real life, with instantaneous transactions made over secure blockchain technology. Customers can buy, store, and exchange 37 cryptocurrencies through a customized app, wallet, and debit card (which they can use to withdraw their money from ATMs). With Wirex, customers can earn crypto rewards for online and in-store spending. They can also buy, sell, and exchange crypto from an easy-to-use app.

8. Ally Bank

Ally is an online bank that offers checking, savings, and money market accounts. With Ally, you can invest in funds that own crypto, such as Grayscale Bitcoin Trust (GBTC) or Orsprey Bitcoin Trust (OBTV). Investments can be made through the Ally Invest app. With Ally, accountholders can invest their money into funds that use crypto to gain exposure to the market.

Advantages of Using a Crypto-Friendly Bank

Using crypto and fiat currency doesn’t have to be an either-or situation. With a crypto-friendly bank, you can enjoy the benefits and convenience of both traditional finance and the crypto space. Crypto-friendly banks deliver a wide array of advantages to account holders, including:

Ease of Transitioning Between Fiat Currency and Cryptocurrency

If you’re a crypto investor, you’ll appreciate a convenient way to convert your digital assets into fiat currency. With a crypto-friendly bank, you can take advantage of a seamless gateway between traditional money and digital assets.

Enhanced Security for Cryptocurrency Holdings

With more global financial institutions venturing into the crypto space, investors can keep their holdings secure. Established financial institutions can provide added layers of DeFi security and safeguards for crypto transactions and holdings.

Digital Asset Custody Services

The more cryptocurrencies you buy, the more important digital asset custody becomes. The popularity of crypto custody has attracted big players to the industry, such as BNY Mellon, Deutsche Bank, JP Morgan, HSBC, and DZ Bank. Partnering with a crypto-friendly bank means you can gain more ways to store your digital tokens securely.

Compliance With Local Regulations and Standards

Regulatory compliance is essential in countries that have strict standards for crypto use. If you ignore these standards, you could risk legal and financial penalties. Crypto-friendly banks take their compliance very seriously, so staying abreast of local regulations and standards is a good best practice for maintaining personal compliance.

Access to Traditional Banking Services Alongside Crypto Services

Crypto-friendly banks offer dual benefits to their customers, meaning they can receive traditional accountholder advantages on top of crypto-based services. For example, users can link traditional banking accounts to their wallets to streamline fiat-to-crypto conversions.

Crypto Is Comfortable With AlphaPoint on Your Side

Overall, choosing a crypto-friendly bank gives you the superb advantage of combining your bank features with crypto custody and transactions. If you want more control over your money, opening an account with a crypto-friendly bank is your first step. However, if you run a financial institution, there’s a market need for crypto-based services. Integrating these services into your business model with an experienced white-label service provider like AlphaPoint can attract more customers and stay ahead of your competitors. If you want to find out how other financial institutions have successfully created crypto banking systems, check out our case studies.