Puerto Rico’s FV Bank to Roll Out Crypto Related Services
Across the world, banks are starting to tone down their approach on cryptocurrency and start offering digital asset related services to their clients. Puerto Rico based FV Bank is the latest to join the list as it gained endorsement from the country’s Office of the Commissioner of Financial Institutions (OFIC) to offer custodial facilities for cryptos such as Bitcoin and Ethereum.
FV (fintech ventures) Bank had applied for license from Puerto Rico OFIC. The initiative came after the US Office of the Comptroller of the Currency (OCC) allowed banks to act as custodian of cryptos for their clients in July.
Says FV Bank CEO Miles Paschini,
“When the OCC came out with their opinion back in July, we saw that as an opening and went to our regulator and sought clarification and permission as a bank to provide custodial services to our customers. Our goal is to allow anyone, from an individual to an institution, to custody their digital assets and also have seamless banking services related to that custody.”
Other banks which have started offering cryptocurrency related services are DBS Bank of Singapore, Standard Chartered, and Argentina-based BBVA.
Back in October, DBS started offering three new services, namely custody, cryptocurrency trading and a platform for carrying out security token offerings. Earlier this month, DBS set up its crypto business division named DBS Digital Exchange.
FV Bank aims to launch in the first-quarter of 2021. The bank is partnering with an untold custody technology framework provider and will associate with a slightly different OTC (over-the-counter) trading desk to boost liquidity in the crypto market.
Paschini stated that the bank will also offer a $20 million insurance coverage and increase it as the quantum of assets being managed rises. FV Bank’s custodial facilities are offered to institutional and retail clients who can set up encrypted private accounts that can possess both crypto and fiat currencies, swap between currencies, and utilize the institution’s in-house live platform to complete institution level payments.
Furthermore, FV Bank will offer crypto addresses to account holders for making transfers. This is in addition to the standard internet and mobile banking facilities.