Crypto Adaptive BankProv inks deal with Republic to offer escrow accounts Zeynep Geylan · 7 hours ago · 2 minutes read
2 min readUpdated: August 16, 2022 8:37 PM
Cover art/illustration via CryptoSlate
Crypto-adaptive commercial bank BankProv is partnering with crowdfunding marketplace Republic to offer escrow accounts to BankProv customers looking to raise funds on its platform. Republic will revamp BankProv’s Banking-as-a-Service (BaaS) service, which is outsourced from financial technology firm Treasury Prime. Through the new partnership, Republic will offer custodial accounts to BankProv customers using Treasury Prime’s API-based financial services. BankProv CEO Dave Mansfield commented on the new partnership and said:“Our focus on developing specialized Banking-as-a-Service (BaaS) technologies tailored to our clients allows us to deploy industry-first solutions for underserved markets.”
With the new custodial service, BankProv’s corporate clients can raise funds for their projects in cryptocurrencies and fiat currencies.
BankProv BankProv is a 200-year-old company Provident Bancorp subsidiary and operates legally as Provident Bank. BankProv defines itself as a “future-oriented commercial bank” for corporate clients. Its services revolve around encryption, renewable energy and innovative financial technologies. The bank provides crypto-native companies with Bitcoin ATMs, crypto-backed lending options, crypto deposit solutions, and U.S. dollar accounts. Its escrow account will be a new addition to the bank’s crypto services.
Crypto Bank vs Crypto Friendly BankDue to Crypto Field A well-developed regulatory framework is still lacking, making it difficult to say what makes crypto banks. In the United States, any institution can use the name “Bank” as long as it is licensed to hold U.S. dollars. In this regard, a bank with crypto integration cannot be considered a crypto bank. Next-generation banks like Revolut, Juno and ally offer banking solutions and crypto integration. For example, Revolut allows its users to access and trade crypto assets and stock markets from its platform. Ally has a Coinbase integration where users can link their bank account or credit card to their Coinbase wallet and use them for crypto transactions. Juno, on the other hand, offers interest on USDC savings and allows users to convert their salaries into cryptocurrency. Some people think that it is enough to let users hold cryptocurrency to become a cryptocurrency bank. Others, such as Cornell Law School professor Dan Awrey, argue that the term cryptobank “ensures a specific meaning.” While Awrey doesn’t specify what the specific meaning is, it’s fair to say that BankProv is more Other new generation banks have higher crypto adoption rates and are closest to being called crypto banks. While being called a crypto bank may not be enough, BankProv offers crypto companies U.S. dollar accounts and crypto-backed lending options not offered by other new-generation banks.
