Users can exchange up to eight types of cryptocurrencies, including ETH and LTC.
Transactions have a one-time fee of 1% of the amount involved, the bank reported.
There are banks that stay as far away from bitcoin (BTC) as possible on the grounds that it is a speculative digital asset. Others do the opposite, moving closer to the point of allowing their customers to buy or sell cryptoassets. This is the case of Vast Bank, an American bank that is transforming its business models to cater to users who want to buy and sell cryptocurrencies.
The institution has the recognition of the US regulatory authorities as it is part of the Federal Deposit Insurance Corporation (FDIC). Moreover, the cryptocurrency exchange and custody service was discussed with representatives of the Federal Reserve, i.e. the central bank of the North American nation. Even, the Office of the Comptroller of the Currency (OCC) also gave the go-ahead to the bank’s service.
Vast Bank users can buy and sell bitcoin, or seven other cryptocurrencies, directly from their checking accounts with a fee of 1% of the amount transacted. The other cryptoassets supported are: ether (ETH), litecoin (LTC), cardano (ADA), filecoin (FIL), orchid (OXT), bitcoin cash (BCH) and algorand (ALGO), the bank noted
For Brad Scrivner, CEO of Vast Bank, banks would have an advantage in relation to cryptocurrency-based businesses. According to the executive, the fact that institutions already know the regulations allows them to do the “right things” in the bitcoiner universe. According to Scrivner, there are different types of users in the ecosystem and a solution for each group.
“There are a lot of different customers who may want to control everything and have their own wallet, their own passwords. Then there are those who are curious about cryptocurrencies and may prefer to work with a bank or an intermediary, simply because they don’t quite understand it,” Scrivner explained
as quoted by Forbes.
Terms of service
The activation of the cryptocurrency trading and custody service is the result of a partnership with the exchange Coinbase and IT company SAP. Users can transfer funds directly from the bank’s mobile app, but will only be able to use up to $1,000 for bitcoin trading.
The rest of the funds, if any, will be available five business days after the day of deposit. This is due to regulatory measures to comply with anti-money laundering and terrorist financing regulations. It should also be remembered that FDIC coverage is in relation to dollar accounts and not cryptocurrencies.
The bank’s support in its service with cryptocurrencies also covers other aspects including: bill payments, depositing checks that can be converted to bitcoin and mobilizing funds through a debit card.
Vast Bank’s decision, to offer bitcoin transactions, is related to a guideline taken by the Office of the Comptroller of the Currency in July last year. CryptoNews reported at that time that the OCC authorized banks to offer custody services with cryptocurrencies, an unprecedented fact that opened the doors to the universe of digital assets.