FV Bank Becomes First Commonwealth Digital Assets Custodian

United States-licensed global digital bank FinTech Ventures popularly regarded as FV Bank is now the first bank of the Commonwealth to launch a digital assets custody service.

The crypto bank which is registered in Puerto Rico offers a range of vertically-integrated suites of traditional and digital asset banking and custody services to its U.S and international clients. 

“We are extremely pleased to announce the official launch of our digital asset custody and settlement service,” said Miles Paschini, Chief Executive Officer (CEO) of FV Bank.

With this addition as a digital assets custodian, its users can store, transfer as well as sell Bitcoin (BTC) and fiat currency within a single account.

In the weeks following, FV bank’s clients will have a wider range of options including Ethereum (ETH), Tether (USDT), and USD Coin (USDC). Ultimately, many other cryptocurrencies and stablecoins will be added in the near future once they have been approved.

“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,” Paschini outlined

FV Bank Bridges Gap Between Traditional And Digital Markets

FV Bank claims that the newly introduced infrastructure will enhance the relationship between the traditional financial sector and the digital asset economy. Eventually, the Caribbean-based bank plans to enhance mass crypto adoption. 

This seems to be the latest face of competition seeing that there are quite a number of crypto exchanges that provides clients with the ability to swap physical currency for digital currency while only a few U.S banks have that capability. Last month, the oldest bank in the U.S, BNY Mellon launched a system that permits institutional clients to hold and transfer BTC and ETH.

BNY Mellon was able to achieve the crypto service offering through a partnership with institutional crypto custodian Fireblocks and Crypto analytic firm Chainalysis. Taking a cue from the FTX collapse and Binance’s plans to acquire the exchange, many believe that banks that have stricter regulatory frameworks will help minimize threats and risk compared to crypto exchanges.