U.S. Vast bank becomes the first federally chartered bank to allow crypto trading. Customers of Vast Bank can now purchase, sell, and store eight cryptocurrencies using their FDIC-insured bank checking account.
Bitcoin, Ethereum, Litecoin, Cardano, Filecoin, Orchid, Bitcoin Cash, and Algorand are among the cryptocurrencies that can be traded using the accounts. Buyers and sellers of these coins will be able to receive quick payment from the bank.
It comes after the Office of the Comptroller of the Currency (OCC) announced in July that national banks and federal savings organizations would be able to provide custody services to their customers.
The move, which was approved by the OCC and entailed conversations with the Federal Reserve, was made in response to client demand as well as the bank’s assessment of crypto’s potential to become “extremely disruptive in financial services,” according to Vast Bank CEO Brad Scrivner.
Given the growing popularity of digital assets, he told Forbes in an interview that the bank is starting to accept crypto trading and custody.
He stated that his bank would primarily assist customers who want to trade cryptocurrency but want to do it through a middleman.
“There are many different consumers out there who may want to control everything and have their wallet and passcodes, and then there are those who are crypto interested and may want to deal with a bank or an intermediary, just because they don’t understand.”
He said that the decision was backed up by studies revealing that more than 60% of people are interested in cryptocurrency.
According to him, the bank is close to finishing procedures that will allow consumers to deposit crypto into their bank accounts, allowing the bank to operate as a custodian.
The bank is putting in place tools that will allow it to examine blockchains while also adhering to AML and KYC regulations. This would allow the bank to figure out where the crypto came from and secure user funds.
