Vast Bank customers can now buy, sell and hold eight cryptocurrencies directly from and through an FDIC insured bank account. The cryptocurrencies available for trading through the accounts are Bitcoin, Ethereum, Litecoin, Cardano, Filecoin, Orchid, Bitcoin Cash, and Algorand.
The bank will offer instant settlement to buyers and sellers of these coins.
This makes Vast the first federally accredited bank in the country to allow customers to exchange and hold digital currencies, which is a milestone. This follows an announcement by the Office of the Comptroller of the Currency (OCC) in July that national banks and federal savings associations can offer custodial services to their clients.
Vast Bank CEO Brad Scrivner said the move, which was approved by the OCC and also involved discussions with the Federal Reserve, is due to customer demand as well as the assessment of the bank on the potential of cryptography. “Very disruptive in financial services”.
He told Forbes in an interview that the bank is starting to allow cryptocurrency trading and custody given the growing popularity of digital assets. He said his bank would primarily serve customers who want to trade cryptocurrencies but wish to do so through an intermediary.
“There are a lot of different clients who may want to control everything and have their wallet, their access codes, and then there are those who are curious about crypto and may prefer to work with a bank or an intermediary, simply because they don’t. quite understand.
He revealed that this decision was also supported by research showing that more than 60% of individuals are interested in cryptocurrency.
According to him, the bank is finalizing processes that would allow customers to transfer the crypto they have to their bank account so that the bank can act as a custodian. In particular, the bank is putting in place tools enabling it to analyze blockchains and comply with AML and KYC requirements. This would allow the bank to understand the source of this crypto and secure user funds.