Vast Bank became the first U.S. bank with the Federal Deposit Insurance Corporation (FDIC) insurance and a Federal Reserve charter to offer services with Bitcoin. Bank customers can buy and sell Bitcoin directly from their checking accounts.
Vast Bank is at the forefront of the cryptocurrency revolution as it became the first bank in the U.S. to offer services with Bitcoin to its customers. The bank's customers will now be able to conduct Bitcoin transactions directly from their own account, and the bank's custody solutions include a mobile trading platform with instant settlement to its accounts.
Vast Bank provided new cryptocurrency services after it was approved by the Office of the Comptroller of the Currency (OCC) and the matter was discussed with the Federal Reserve, Forbes reported. Vast Bank CEO Brad Scrivner told Forbes: “We're familiar with regulation, we're going to do the right things, we're going to do things to make sure the financial system is kept safe and sound.”
While many crypto investors prefer to store their Bitcoin and other cryptocurrencies on their own, there are also many clients who are unwilling to understand the complexities of this process. This is why, for some, the help of a bank can be a welcomed convenience. “There's lots of different customers out there that may want to control everything and have their own wallet, their own passcodes, and then there are those who are crypto curious and may prefer to work with a bank or an intermediary, just because they don't quite understand,” said Scrivner.
Vast Bank first looked into custodying crypto in July of 2020, after the OCC announced that with a National Bank Charter the institution could custody Bitcoin and other crypto assets, according to Bitcoin Magazine. After that, both the Board and the shareholders decided to “prioritize crypto in our work.” According to Scrivner, a Gallup/inhouse poll at Vast showed that more than 60 percent of customers were interested in Bitcoin and other cryptos, but “they’re also saying we want to have a bank involved with our custody of cryptocurrency.”
The bank is also currently working to allow customers to deposit their Bitcoin in private wallets and on exchanges with the bank.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.