Medici Bank To Roll Out Private Beta In October; Q1 2020 Launch With Goal Of $1B In Assets & Deposits
Medici Bank is exploring new ways of becoming crypto-friendly, its CEO Ed Boyle has revealed. The bank which is located in Puerto Rico, a territory of the US, has said it is in the process of testing its virtual onboarding procedure that will comprise web portals as well as the application programing interface.
The process will bring on board about five companies from around the world and the main aim will be to examine whether the bank’s system are prudent to accommodate trading volume.
Speaking to CoinDesk, Boyle revealed that among the five firms, two or three of them will be crypto-based and one of them is a crypto exchange platform.
The bank that was started by Prince Lorenzo de’ Medici about 500 years ago in Italy is set to become one of the few banking institutions that are crypto friendly.
Majority of mainstream banking institutions are wary of serving the crypto sector due to the perceived high risks involved especially on money laundering and financing of crimes. This makes it costly to comply with the tough laws and rules imposed compared to the revenue the banks will generate.
In the US only a few banks have opened their doors to crypto companies comprising of Silvergate, Signature, Quontic as well as Metropolitan Commercial. In recent years, Fidor Bank from Germany also started to accept crypto customers. It is worth to note that Boyle was the head of Fidor Bank US subsidiary.
Boyle also stated that there are less than 10 banks in the world that serve crypto clients and wants Medici to join the chosen few.
Medici is set to go on an open beta by year end, which is not a completely operational environment with a few users. As per Boyle, the bank is optimistic that it will fully roll on the service within the first quarter of next year and aims at about $1 billion of both deposits and assets placed under its management by three years.
Medici also looks forward at splitting its clients base between fintech-based firms where crypto businesses fall, import-export firms as well as private wealth customers. Boyle stated that the bank is optimistic that more than half of its business is likely to be crypto clients.