It’s 2023, but a lot of countries are still split on the question of crypto and blockchain technology. Some, like China, ban it completely and have created Institutional roadblocks to cryptocurrency adoption. Others, like El Salvador, have accepted crypto with all its complexities.
This means that the banking system has different attitudes towards crypto as well. The traditional bank became extremely crypto-averse, while the modern bank explored the possibilities of crypto trading.
Cryptocurrency trading enthusiasts who are interested in using traditional banking services to explore the cryptocurrencies should learn about the crypto-friendly banks they can use. That’s why this article will be revealing the eight most crypto-friendly banks in the world.
Best Crypto-Friendly Banks
Revolut just launched in 2020, but it is now a leading bank in both the UK and Europe. Asides from being a leading bank in the traditional sense, it’s one of the biggest crypto banks in the world.
Revolut is one of the few financial institutions that provide direct access for users who would like to purchase crypto from their bank account. Users can simply download the Revolut app, and purchase Bitcoin directly from it. The bank’s customers can also set up an automatic buy order that purchases crypto once certain market conditions are met.
Users can complete an off-chain transaction of cryptocurency to another customer on the app. Customers of the bank who live in eligible locations can also use their credit cards to settle bills with crypto. The app will automatically convert the crypto balance in the app into fiat, and use it to make the payment.
Asides from allowing people to purchase crypto and use them to settle crypto transactions, Revolut also offers a staking service on selected crypto assets. The bank uses third-party validators to provide this service, and the list of potential third-party validators can be found on the app.
Despite validators staking assets for users, these assets aren’t transferred to the validators. They remain in the bank’s custody, so there’s no risk of the assets being stolen.
While the bank offers a lot of crypto-friendly benefits and banking services, the bank has its downsides as well. One such downside is that the bank charges a statutory transaction fee of 2.5% on all payments involving digital assets. The transaction fee climbs up to 3.5% if the transaction exceeds £1,000.
However, these fees can be reduced by upgrading the account in question to a metal or premium classification. But that will cost about £7 or £13.
The app may also ask users to cover the staking fees on certain networks. Asides from all this, the bank has announced plans to launch a native coin of its own called RevCoin.
This bank tops this list because it offers a more expansive cryptocurrency product suite than any other bank.
- The bank allows users to own savings accounts that they can use for crypto payments.
- The bank provides staking services.
- The bank charges a high percentage on each transaction.
2. Juno Bank
Juno is another crypto friendly bank that cryptocurrency enthusiasts should know about. By virtue of having a Juno account, customers can get acces to an extensive product suite of cryptocurrency banking services. The bank offers all the services of traditional banks and supplements them with crypto products as well.
Customers of Juno bank can connect their Web 3.0 wallet to the Juno app, and cash out their cryptocurrency into an FDIC insured checking account in seconds. They can also use Layer 2 blockchain solutions seamlessly via the app.
For example, Juno customers can withdraw USDC and ETH to Arbitrium and Polygon. One can also set up their accounts or invest certain percentages of their paychecks in digital assets every month. Juno also has a special crypto debit card that allows users to earn 5% back on every transaction. Asides from that, the bank has a special Web 3.0 loyalty program.
Juno bank makes this list because of its expansive product suite and increased cryptocurrency integration with regular banking services.
- Checking accounts on the app can seamlessly connect to Layer 2 blockchain solutions.
- Juno does not provide savings account services.
SoFi is an online bank that works almost like a crypto exchange as it allows people to complete a lot of crypto payments seamlessly. Users can buy crypto on the app, sell it, and hold it.
However, unlike other banks that allow external wallets to get connected, SoFi runs a closed-loop system. This means that users cannot transfer their cryptocurrencies from the SoFi app to another wallet. The reason for this closed-loop system is to offer maximum security for deposits. SoFi also claims that the bank may, in the future, open the closed loop system that it runs.
The bank charges about 1.25% of every crypto transaction. The transaction fees on purchases are usually added to the price of the asset automatically. Perhaps the most exciting thing about SoFi, and the reason why it’s a leading crypto-friendly bank, is the fact that the bank offers up to 100$ in BTC as an account opening bonus. However, terms and conditions apply to this bonus, and not every account gets it.
SoFi makes this list because of the huge BTC bonus it offers to new accounts.
- The percentage SoFi charges on transactions isn’t as high as those of its competitors.
- SoFi runs a closed loop system, so third party wallets cannot be connected to accounts in the app.
Fidor calls itself the bank of the future and argues that it is a true pioneer in cryptocurrency trading and banking. That’s a strong claim, but Fidor backs the claim up with great evidence.
First of all, the crypto bank allows users to sell and buy cryptocurrencies on its app through Bitcoin.de, a trading platform for Bitcoin. Unlike SoFi, Fidor allows users to integrate their crypto wallets directly with their Fidor accounts. This means that users of Fidor can purchase coins using the account, and then move those assets to third-party wallets.
Fidor also has a booming partnership with Kraken that allows users to integrate their Fidor account with their Kraken exchange account. Additionally, the bank has an Initial Coin Offering (ICO) corporate account that allows users to convert cryptocurrencies into fiat money. Finally, the bank has extremely low crypto transaction fees that go as low as 0.26%.
Fidor makes this list because of its amazing ICO corporate account and low percentage charges on crypto payments.
- Fidor allows accounts to be integrated with third party wallets.
- The bank charges a low percentage on transactions.
- Fidor does not provide cryptocurrency staking services.
5. Wirex Bank
Wirex doesn’t sell itself as a bank that merely provides crypto functionality. Instead, it sells itself as a bank primarily made for Web 3.0 and crypto. That’s probably why the bank calls itself a “banking alternative for Web 3.0”.
Because crypto isn’t an afterthought for Wirex, the company goes all in into providing crypto products. For one, the company offers all the standard services that the biggest crypto-friendly banks offer. This includes the ability to buy and sell digital currencies directly through the app and the ability to swap tokens across chains.
The bank also offers up to 8% cash back on every crypto transaction done through its debit card. There’s also a Wirex token network that gives customers exclusive crypto awards. People can also earn up to 16% on the cryptocurrencies in their accounts.
Fidor’s huge percentage cash back policy is a big reason why it made this list.
- The banks offers a substantial cash back percentage on transactions involving cryptocurrencies.
- The debit cards may be unreliable because of changing regulations.
Despite starting out as a traditional bank, Bankprov has proven that it can lead the way when it comes to banking innovation and crypto trading. The bank has an entire suite of cryptocurrency banking products for crypto natives and businesses.
Bankprov partners with Bitcoin ATMs around the world to make sure that customers always have access to their cryptocurrencies and deposits. The bank also has tailored APIs that make the crypto banking process a stress-free and seamless experience for users.
One of the biggest advantages of having a Bankprov account for cryptocurrency natives is that the bank offers crypto-backed lending options. This means that users and customers can use their cryptocurrencies as collateral for loans right in the Bankprov app.
Bankprov’s support for crypto-backed lending products is why it made this list.
- The bank offers extensive support for crypto-backed lending options.
- Bankprov does not accept direct deposits of cryptocurrency assets .
Generally speaking, it would be more accurate to call Coinbase a cryptocurrency exchange rather than a bank. However, Coinbase isn’t just any exchange. It is duly registered with the SEC and is a public company that trades on the NASDAQ. This means the company is just like any other American company, and people can trust it as much as they would trust a regular bank (which, in fairness, isn’t a lot).
Asides from having Institutional trustworthiness, the exchange can also be used as a regular bank. Users can deposit money in fiat currency to their crypto wallet and can withdraw the money as fiat as too. US citizens who have accounts with the crypto exchange also have their deposits insured by the FDIC, which means the funds are as safe as they would be in any bank.
While the bank doesn’t offer interest accounts, it allows users to stake their crypto through their wallets. Crypto staking could accrue rewards that are similar or perhaps even superior to regular interests on bank accounts. However, crypto staking with Coinbase is only available on six tokens; Tezos, Dai, Ethereum, Cosmos, Cardano, and Algorand.
The main drawback is that the company charges hefty fees for transactions. For example, the exchange charges about 3.99% on every crypto-based transaction — which is a seriously high fee. Users who want to buy or sell crypto with fiat money will also have to pay a 1.49% fee.
Coinbase makes this list because it insures deposits just like a bank would.
- The bank is not a bank in the strictest sense. Instead it is more like an exchange.
- Coinbase charges a very high percentage of crypto payments made through it.
Quotic is certainly one of the biggest bitcoin friendly banks in the world right now. The bank may not offer the range of crypto banking products that banks like Revolut offer, but the bank manages to hold its own.
Quotic’s most exciting crypto banking product is a Bitcoin rewards checking account. The account is essentially a wallet that people can use to buy and store Bitcoin. The reason this wallet is interesting is that Quotic promises a 1.50% reward on every transaction completed through the account.
That means, on a daily basis about 1.50% of every Bitcoin-based transaction completed by the user will accrue in the bank as US dollars. The next day, the rewards accrued will be used to purchase Bitcoin, and the cryptocurrency will be added to the checking account. It’s a stress-free way for crypto enthusiasts to both earn in Bitcoin and invest in the asset as well.
However, this checking account required a minimum of about 500USD in Bitcoin to be opened. This service is the major reason why Quontic made this list.
- Quontic allows people to invest with Bitcoin and spend it at the same time.
- Quontic has very limited cryptocurrency products for its users. There are no staking options or even crypto backed lending services that the company offers.
On The Flipside
- Users who would like to use a crypto-friendly bank to purchase and hold crypto could be better served by just using cryptocurrency exchanges or decentralized solutions. These solutions are generally cheaper than banks, no matter how crypto-friendly they are.
- Coinbase’s status with the SEC doesn’t mean the company doesn’t have any compliance issues. Recently, Coinbase had to settle a compliance suit with New York regulators. The settlement was about $100 million in fees.
Why You Should Care
Crypto-friendly banks are important parts of the crypto space. They serve as important nurseries for potential cryptocurrency enthusiasts who are looking to play a role in the crypto ecosystem. These banks also serve as a measure of the adoption of cryptocurrencies among financial institutions.
For example, if many financial institutions accept cryptocurrencies, it shows that crypto’s adoption rates are growing. However, if the number of crypto-friendly banks reduces, it shows that cryptocurrency adoption is slowing down. In any case, this list of crypto-friendly banks is an important resource for cryptocurrency enthusiasts looking for crypto-compatible financial services providers.