Traditional banks offer digital asset custody amid compliance legislation

Wednesday 23 December 2020, 1:17 AM AEST - 2 months ago

More and more traditional banks have started announcing support for digital assets as the price of Bitcoin (BTC) continues to make headlines for record-breaking all-time highs. Even major banks like JPMorgan Chase, which previously frowned upon Bitcoin, have taken a newfound interest in the cryptocurrency. Contrary to what Goldman Sachs stated recently, JPMorgans strategists have noted that the price of gold would suffer from a structural flow headwind over the coming years due to Bitcoins growth.

While JPMorgan Chase is clearly taking a softer stance on Bitcoin, some leading banks are going a step further by offering clients custody services for digital assets. For example, FV Bank, a Puerto Rico-based digital bank, announced on Dec. 21 that it received permission from the Puerto Rico Office of the Commissioner of Financial Institutions to provide custody services for all major cryptocurrencies, including Bitcoin and Ether (ETH), along with support for ERC-20 tokens.

Miles Paschini, CEO at FV Bank, told Cointelegraph that the bank will begin offering custody services integrated within its digital platform in early 2021. Both institutional and retail customers will then be able to open an account with fiat and digital asset balances. Paschini added:

Banks are well-positioned to provide secure custody and to provide banking services to enable a seamless experience. Puerto Rico just happens to be a mature financial services market which is well positioned to authorize its licensed institutions to provide these services to international clientele while adhering to the requisite Bank Secrecy Act and Anti Money Laundering requirements.

According to Paschini, FV Bank account holders will be provided cryptocurrency deposit addresses for each digital asset they wish to hold in their accounts. The digital assets will be managed in a secure and insured custodial account linked to the users digital bank account. Services will be accessed through online and mobile banking applications.

Ni ...

Read full story on Cointelegraph

Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.