U.S.-based commercial bank, The Provident Bank, announced Tuesday that it is offering deposit and other banking services to cryptocurrency firms including exchanges.
The digital asset space is “largely unbanked and clients want deposit services,” said The Provident Bank CEO, Dave Mansfield.
Clients’ deposits will be insured “in full” because of an affiliation with the Depositors Insurance Fund, the bank said, adding that the Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000, but the Depositors Insurance Fund insures the rest, “down to the last penny.”
The bank further said that it has partnered with Bitfury to use its Crystal Blockchain analytics platform for smooth client onboarding and transaction monitoring procedures.
Silvergate Bank also offers services to crypto firms, but it recently saw its deposits from digital currency companies decline for the 2nd quarter in a row largely due to a strong pullback in deposit balances from its exchange customers.