The Provident Bank Announces Fully Insured Deposits for Crypto Companies
The Provident Bank, a community bank based in the U. S., has decided to offer deposit services for customers who are in the crypto field. The bank is now offering deposits and other banking services to companies that can be considered crypto issuers, investors or exchanges.
This announcement, which was made yesterday, also informed the clients that the bank will be using Bitfury’s Crystal tool in order to map crypto transactions. Crystal is an analytics tool created by Bitfury in order to discover how the analyzes companies are using the funds and try to catch some illegal activity.
According to the bank’s official announcement, this new tool will be used in order to comply that all the companies related to it will be compliant with the rules and will not use its support to engage in illegal activities without the bank knowing it. Anti-Money Laundering and Know Your Customer procedures are also set to be used before the clients can be white listed to use the service.
Another important aspect of this service is that the bank affirms that full insurance will be provided to the customers. This will happen because the community bank is affiliated with the Deposits Insurance Fund, an institution that can help in these matters. Deposits from up to $250,000 USD will be fully insured by the company.
The CEO of The Provenance Bank, Dave Mansfield, has affirmed that the bank decided to partner with the top tech companies of the country in order to be a part of this new venture. This, he affirms, will be very important in order to create trust with the clients, as they will know that they will be able to have a long-term relationship with the bank and to be compliant with all the local laws.
In order to achieve this goal, the CEO understands that it is important to have a tight hand when it comes to obeying the regulation and to offer some guarantees for the banks, such as the insurance.
Crypto Insurance On The Rise
If a company wants to attract institutional investors, it needs to have some guarantees, which is why The Provident Bank is far from the only company seeking insurance right now.
Last month, for instance, a company called Aon, a leading insurance broker, has affirmed that it will offer new custody solutions for Metaco and that the service will have insurance against crimes. It is interesting to note that Aon already provides around half of the insurance services in the crypto market at the moment.
BitGo, a crypto wallet company, has announced that it would get insurance via Lloyd’s of London early this year. This way, all the clients of the company would be insured.
This shows a clear trend in which several companies are looking for insurance in order to show institutional investors what a good idea it is to invest in the crypto market. With so many cyber thefts and hacks happening lately, this seems like a very good idea.