The First Crypto Bank in Puerto Rico Rolls Out Digital-Asset Custody Service
Brian Njuguna Nov 10, 2022 08:50
FV (Fintech Ventures) Bank, a global financial entity registered in the U.S. territory of Puerto Rico, has launched a digital-asset custody service for seamless safeguarding and interoperability of crypto and fiat.
FV (Fintech Ventures) Bank, a global financial entity registered in the U.S. territory of Puerto Rico, has launched a digital-asset custody service for seamless safeguarding and interoperability of crypto and fiat, according to Bloomberg.
The crypto custody feature will first support Bitcoin (BTC). Later on, Ethereum (ETH), Tether (USDT), and USD Coin (USDC) will be incorporated in coming weeks, with plans to add more cryptocurrencies in the future.
FV Bank finds itself in a rare playing field in the growing banking-meets-crypto industry, according to Steven Beattie.
The financial crime consulting and crypto risk leader at EY added:
“First movers are incredibly valuable. As a first mover you have a chance to change your competitive position across the industry. But being first creates some risk.”
Even though various cryptocurrency exchanges enable users to swap fiat for crypto, only a few US-regulated banks have this ability.
Miles Paschini, FV Bank’s CEO, pointed out:
“Our primary goal since founding FV Bank has been to help drive blockchain technology innovation in financial services by offering institutional clients a technology solution seamlessly integrated into a regulated bank and trust model that offers traditional banking along with digital assets custody and settlement.”
FV Bank sees the digital-asset custody service as a stepping stone toward bridging the gap between the traditional financial sector and the crypto economy. Paschini added:
“We have also advanced best in class AML procedures for digital assets by combining traditional bank compliance functions with specialized blockchain analytics, to ensure we are positioned as a leader and role model for how banks can participate in the convergence of traditional financial services and the digital asset economy.”
Meanwhile, France-based BNP Paribas recently entered the crypto custody bandwagon, Blockchain.News reported.
As the second largest global bank in Europe, BNP Paribas partnered with Swiss-based crypto infrastructure firm Metaco to enable the offering of digital assets custody services to its customers.
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