Tag: Fv Bank

The First Crypto Bank in Puerto Rico Rolls Out Digital-Asset Custody Service

by Blockchain News

FV (Fintech Ventures) Bank, a global financial entity registered in the U.S. territory of Puerto Rico, has launched a digital-asset custody service for seamless safeguarding and interoperability of crypto and fiat, according to Bloomberg. 

The crypto custody feature will first support Bitcoin (BTC). Later on, Ethereum (ETH), Tether (USDT), and USD Coin (USDC) will be incorporated in coming weeks, with plans to add more cryptocurrencies in the future. 

FV Bank finds itself in a rare playing field in the growing banking-meets-crypto industry, according to Steven Beattie.

The financial crime consulting and crypto risk leader at EY added:

“First movers are incredibly valuable. As a first mover you have a chance to change your competitive position across the industry. But being first creates some risk.”

Even though various cryptocurrency exchanges enable users to swap fiat for crypto, only a few US-regulated banks have this ability. 

Miles Paschini, FV Bank’s CEO, pointed out:

“Our primary goal since founding FV Bank has been to help drive blockchain technology innovation in financial services by offering institutional clients a technology solution seamlessly integrated into a regulated bank and trust model that offers traditional banking along with digital assets custody and settlement.”

FV Bank sees the digital-asset custody service as a stepping stone toward bridging the gap between the traditional financial sector and the crypto economy. Paschini added:

“We have also advanced best in class AML procedures for digital assets by combining traditional bank compliance functions with specialized blockchain analytics, to ensure we are positioned as a leader and role model for how banks can participate in the convergence of traditional financial services and the digital asset economy.”

Meanwhile, France-based BNP Paribas recently entered the crypto custody bandwagon, Blockchain.News reported.

As the second largest global bank in Europe, BNP Paribas partnered with Swiss-based crypto infrastructure firm Metaco to enable the offering of digital assets custody services to its customers. 

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FV Bank Partners with Circle for Instant USDC Deposits and Conversion

by Blockchain News

FV Bank, a global digital bank, has partnered with Circle to enable instant and automatic USD Coin (USDC) conversion into USD upon deposit.

Per the announcement:

“FV Bank customers will now be able to receive USDC directly into their bank account, and have the funds instantly converted into USD at the moment of receipt.”

Circle is a global financial technology and the USDC issuer. Therefore, the strategic integration seeks to minimize the friction experienced during settlements, making money transfers faster. 

As a result, FV Bank users will be able to present invoices in USDC to international clients.

Miles Paschini, FV Bank CEO, stated:

“It was imperative for us to work with a stablecoin issuer who has an excellent track record and whose values align with our own.”

He added:

“We look forward to growing our working relationship with Circle, as we collaboratively help bridge the traditional financial system with the world’s leading blockchains to unlock further growth in the digital asset sector.”

Circle’s treasury services and transactions are emerging as a stepping stone toward a frictionless value exchange, prompting a new generation of commerce applications and financial services. 

Arcane Research had predicted that the USDC would dethrone Tether (USDT) at the top stablecoin seat in October. The market insight provider noted:

“At the end of Q2, the total stablecoin supply sat at $151.3 billion, down $35.1 billion, or 18.8%, over the last quarter, the largest quarterly drawdown in the history of stablecoins. It is predicted that the market value of USDC will surpass USDT in October.”

USDT is one of the leading stablecoins with a market capitalization of $67.98 billion at the time of writing, and USDC comes second with a value of $49.95 billion,according to CoinMarketCap. 

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Puerto Rico-Based FV Bank to Offer Regulated Crypto Custody in the US

by Coindesk

A Puerto Rico-based digital challenger bank is launching a custody service for digital assets, offering clients the chance to securely store and exchange major cryptocurrencies from early 2021.

FV Bank (which stands for fintech ventures) announced Monday it has received permission from the Puerto Rico Office of the Commissioner of Financial Institutions (OCIF) to provide custody services for bitcoin, ether, EOS, XRP, and “many” ERC-20 standard tokens. It will also allow “seamless exchange to fiat [currency],” according to a statement.

“We are targeting going live in Q1 2021,” an FV Bank representative told CoinDesk via email.

An announcement earlier this year by the Office of the Comptroller of the Currency (OCC) opened the door for U.S. banks to take custody of digital assets. This presented an opportunity for firms like FV Bank, a nimble innovator originally set up to provide U.S. banking services to fintech companies.

“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,” said Miles Paschini, CEO at FV Bank in an interview. “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.”

Puerto Rico is a Commonwealth of the United States with its own financial regulatory body, the OCIF. But all laws for banking and insurance in the jurisdiction are based on U.S. laws, such as the Bank Secrecy Act (BSA). Because Puerto Rico is part of the U.S. banking system, this allows FV Bank to hold a master account at the Federal Reserve Bank of New York.

Paschini said FV Bank has chosen a custody tech infrastructure partner, but its name has not been made public yet. In terms of liquidity, he said the bank will be working with several large over-the-counter (OTC) cryptocurrency trading desks. 

FV Bank’s regulated custody offering, which uses a technique called multi-party-computation (MPC) to protect private cryptographic keys, also comes with $20 million-worth of insurance cover, sourced from the Lloyd’s of London market.

“We’ll be starting out on day one with a $20 million-dollar policy and we’ll grow that policy commensurate with the assets under management,” said Paschini.

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