There are many similarities in traditional and digital finance – for example, there are classic and cryptocurrency mortgages. The same goes for exchanges and banks. The latter will be discussed in this article.

What are crypto banks

The very concept of “cryptobanks” is quite controversial. The fact is that the concept of cryptocurrencies is based on important fundamental principles that are not typical of traditional financial institutions, such as decentralization, the absence of financial intermediaries (which are banks) and anonymity. Can you imagine banks that don’t collect data about their customers? In addition, credit institutions themselves need a license to carry out their activities. Thus, there are already many inconsistencies on the one hand, and “cryptobank” services on the other.

Banks that are involved in activities with digital assets are divided into “crypto banks” and so-called “crypto-friendly banks”. The first ones, by and large, are focused exclusively on operations with cryptocurrency. All their operations – lending, depositing, trading – are offered in digital currency. The latter are a kind of symbiosis, where there are transactions in both cryptocurrency and fiat money. For the most part, it is the second variety that is found.

Speaking about “crypto banks”, it is worth noting that most likely they will not have any licenses to carry out activities with digital currency. Thus, de facto they are “crypto” (banks), since they provide all the related functionality, but de jure they are not “banks” in the sense of completely legal financial institutions, since they do not have licenses. Let’s look at several organizations that provide cryptocurrency services and call themselves banks.

Revolut

Revolut is perhaps one of the most popular banks that provides various services with cryptocurrencies. It began its activities in 2015, when it received a license in the UK. The company subsequently expanded and today operates in all parts of the world.

A Revolut account can be used to make and receive payments in cryptocurrency. At the same time, the bank itself acts solely as an intermediary, warning that cryptoassets are not ordinary or even electronic money, therefore, if legislators have questions, they will have to resolve them themselves.

In addition to buying and selling cryptocurrencies, depositing is available here. However, not all crypto assets are eligible for this service. Carefully read the terms and conditions for each specific coin. It is also possible to withdraw money to third-party accounts, but this feature is only available to users located in jurisdictions where this is not prohibited.

Cryptocurrencies can also be transferred to other Revolut clients. To do this, they only need to install the Revolut App. Staking and referral programs are also available for certain users, within which you can receive rewards for bringing new clients.

Revolut supports 120 crypto assets, including BTC, ETH and USDT. There is a commission for transactions with them, the minimum amount of which is 0.49%. The total cost of the transaction fee will depend on your subscription plan. There are five in total, and prices range from £0 to £45 per month.

Bitwala

Bitwala is a product from Germany that provides banking services to clients from 29 European jurisdictions. The bank began its activities back in 2014, and now the amount of assets under its management exceeds 500 million euros. Since its inception, Bitwala has handled transactions worth over €3 billion. The bank also has mobile versions for Android And iOS.

Bitwala specializes in working with the largest cryptocurrencies: Bitcoin and Ether. Here you can store, receive and send digital currencies using custodial and non-custodial wallets. Operations can be performed 24 hours a day, 7 days a week. You can spend cryptocurrencies using virtual and regular cards from Bitwala, and the protection of digital assets is ensured thanks to biometric data.

The only operation for which there is no commission is the deposit of crypto assets. For all other transactions there is a fee of 1 euro, and for trading cryptocurrencies – 1 euro + 1% of trading volume.

Wirex

Wirex positions itself as a banking alternative created for Web3. From a legal point of view, the company is not a bank, since it does not have a license. However, if you look at the range of services offered, you can come to a different conclusion.

Firstly, there is a special debit card with which you can spend cryptocurrency, including stablecoins. In addition, you can use it to get up to 8% “cryptoback” – an analogue of cashback expressed in cryptoassets. Secondly, Wirex has a bridge for moving cryptocurrencies between blockchains.

Wirex supports approximately 250 digital assets, including BTC, ETH, DOGE and others. Some of them – USDC, USDT, DAI and NXUSD – can even be borrowed. However, for this you will need to leave a deposit in cryptocurrency. 25 crypto assets are accepted as collateral. In this case, the loan cannot be more than 70% of the market value of the collateral.

Like other banks, Wirex has different payment plans. There are three of them: Standard, Premium and Elite. The first is free, but the second and third will cost you $9.99 and $29.99 per month, respectively. The difference in tariffs is in the conditions. For example, cryptoback for the Standard tariff is 1%, for Premium – 6%, for Elite – 8%.

Wirex, like Bitwala, has a mobile application that is available for both Androidand for iOS.

Quontic

Quontic – digital American bank. In 2020, it became the first FDIC-sponsored organization in the United States to issue a debit card with Bitcoin cashback rewards. Total for purchases You can earn up to 1.5% with a bank card. Rewards for purchases made in Bitcoin are paid in dollars.

However, the bank is available only in the USA, and even then not everywhere. Thus, in the District of Columbia, North Carolina, Hawaii and Puerto Rico, you will not be able to use bank services.

Quontic doesn’t charge a monthly account fee. But here you need to pay for additional services or for the fact that you are not an active user. In the latter case, you will have to pay $5 per month.

Sygnum

Sygnum Bank was founded in 2017 in Singapore. At the moment it has two wings: in Switzerland and in Singapore.

The bank provides a fairly large volume of services. For example, here you can trade not only various cryptocurrencies, but also options on them on the over-the-counter market. There is also staking – it, of course, is only available for cryptocurrencies using the Proof-of-Stake (PoS) algorithm. Sygnum offers staking coins such as Ether, Cardano, Cosmos and Tezos. The yield on operations ranges from 4% to 10% per annum. The size of the reward depends on the staking period: the longer you hold the cryptocurrency, the greater the percentage you receive.

There is also a fairly extensive offer of various loans in cryptocurrency, for example, a special credit line for “green” miners. Loans are issued against collateral in cryptocurrency. You can use Bitcoin, Ethereum, Litecoin, Polygon and others as collateral. Soon Solana and Polkadot will be added to them. Any Sygnum client can receive a loan: both private and institutional. The bank also offers trust management of crypto assets and various business solutions.

Like all other banks, Sygnum charges a commission for conducting transactions with cryptocurrencies. In most cases she does not exceed 1%.

Cashaa

Cashaa is a banking platform for businesses. It was created in 2016. Cashaa is currently available in 200 jurisdictions around the world. You can send and receive cryptocurrency on the platform on an ongoing basis, both from a computer and from a smartphone (there are versions for Android And iOS).

Interestingly, Cashaa stores fiat and crypto assets within one account. At the same time, commissions for the latter vary from 0.5% to 1%. You can also receive passive income through depositing crypto assets. For example, according to stablecoin USDC can earn up to 20% per annum, and bitcoin And broadcast – up to 11% per annum.

Cashaa also has its own CAS token. It is quite functional within the platform. For example, you can use it to pay commissions. Your level of loyalty is determined by its quantity in your portfolio: the minimum is “Base”, the maximum is “Diamond”. The higher it is, the more functionality available to you inside Cashaa.

SEBA Bank

SEBA Bank is a Swiss organization supporting digital currencies since 2019. The conditions for opening an account here are quite strict: you must either have 500,000 Swiss francs and an understanding of investment risks, or 2 million Swiss francs excluding real estate, social security claims and assets in pension funds. You can open an account via smartphones on Android And iOS.

The bank provides staking services for the following cryptocurrencies: Tezos, Polkadot, ether. The reward for them ranges from 4% to 15%. In this case, you will have to pay 15% on profits.

It is also possible to get a loan. It is issued in amounts equivalent to CHF 200,000. In order to obtain it, a deposit is required. Only some cryptocurrencies can act as it, for example, Bitcoin, Ethereum and Cardano.

Cryptocurrencies can be traded either directly or through derivatives on the over-the-counter market.

Vast Bank

Vast Bank – American organization. Here you can buy, sell and hold cryptocurrency. This is done through a mobile application, which is available both for devices on Androidand on iOS. Here you can conduct transactions with Bitcoin, Ethereum, Chainlink, Cardano and other cryptocurrencies. There is a 1% commission for transactions.

Note that although the bank has insurance from the FDIC, this only applies to fiat accounts. There are no guarantees regarding crypto assets as the volatility of crypto assets is very high.

Bankera

Bankera – Lithuanian bank. In general, it is focused on fiat transactions. However, it supports deposit/withdrawal of money from crypto exchanges. In addition, Bankera has special offers for businesses involved in blockchain. However, there is no cryptocurrency wallet here. All this adds up to make the bank cryptocurrency friendly. Bankera, like other organizations, has a mobile application that is available on Android And iOS.

Xapo Bank

Xapo Bank is a Bitcoin-friendly bank from Gibraltar. The organization has a license. Xapo Bank is regulated by the Gibraltar Financial Services Commission. Thus, it is de jure a bank.

Regarding Bitcoin, Xapo Bank has many interesting services, for example, it supports the Lightning Network, which allows you to reduce fees to $0.0015. Your investments are protected, since the bank has its own reserves in Bitcoin (or so it claims). There is also a service for converting stablecoins into fiat and back, and also accrues 1% on deposits in Bitcoin.

However, an account with Xapo Bank is free only for the first 30 days. Then you will have to pay either $12.5 per month for an annual subscription, or $14.99 for a monthly subscription. Xapo Bank has a mobile application available on Android and iOS.

Thus, it can be noted that the number of classic crypto banks is very small. For the most part, all organizations are cryptocurrency friendly, as they simultaneously offer services in fiat and digital assets.

This material and the information contained herein do not constitute individual or other investment advice. The opinion of the editors may not coincide with the opinions of the author, analytical portals and experts.