In the midst of the impending crypto bull run, Q4 2023 marks a crucial period for DeFi enthusiasts to streamline their administrative processes. One of the most crucial elements of such transition will be to identify the world’s most crypto friendly banks, as whilst traditional banks continue to restrict certain crypto-related activities, the demand for digitally-native and innovative alternatives has never been more urgent.
With this in mind, the following article aims to shed light on TradFi’s most crypto friendly banks…i.e. the entities that are embracing the crypto revolution for the betterment of their crypto trading customers.
Crypto Friendly Banks - A Review
Ally Bank (USA)
Ally Bank is a FDIC insured and natively online crypto banking solution that’s geared towards customers in the USA.
With a 24/7 customer support service at the helm, its customers can enjoy a native app that allows them to send funds to crypto exchanges/ DeFi platforms at will - meaning there’s no need to worry about transactions being frozen. That being said, such app still doesn’t support in-app crypto purchases.
Additionally, crypto exchange Coinbase is integrated on the app, meaning an Ally Bank x Coinbase approach to crypto trading could be a productive direction to go down for US traders.
When it comes to saving features, Ally also offers a savings account with an impressive 1.4% APY, as well as a feature that allows customers to invest in stocks without incurring commission fees.
In turn, this can allow traders purchase crypto products such as the Osprey Bitcoin Trust (OBTV), the Grayscale Bitcoin Trust (GBTC), and perhaps future Spot Bitcoin ETFs, without paying any fees.
In conclusion, whilst its lack of direct in-app crypto purchases is a slight downfall, Ally’s crypto fund options and Coinbase integration makes it a proficient banking option for crypto traders. And with the former feature in mind, the bank is perhaps best suited to investors who aren’t bothered about self custody options.
Fidor Bank (Germany)
Germany’s digital-only Fidor Bank has consistently held its position as a preferred choice for crypto enthusiasts since 2014.
Despite its German exclusivity, Fidor is widely recognised as one of Europe’s most crypto-friendly banks, with its user-friendly account setup process and low fees being reasons for this. With regards to the latter, Fidor fees start at just €5 per month, and can be reduced if users engage in 10+ monthly transactions.
In 2014, the bank also entered a strategic partnership with notorious German crypto exchange, Bitcoin.de. Such collaboration facilitated new features such as swifter fund deposits for cryptocurrency purchases.
More recently, Fidor has expanded its partnerships to include crypto exchange Kraken - therefore meaning German Bitcoiners have the potential to experience an awesome trifecta of interlinking finance bodies.
And when it comes to the inferences made here, Fidor's direct partnerships with prominent crypto entities instil a sense of confidence that stems from its unlikeness to disrupt or freeze user crypto transactions.
With US and German users catered for, it’s now time to offer a DeFi banking solution for those in the crypto hub of the UK… with our choice being Monzo.
As is the ruling theme in this list, Monzo is another crypto-friendly, digital-only bank that offers zero-fees for card payments…irrespective of which country users may be in, as well as what type of account they have.
As of Q4 2023, Monzo supports crypto funding across many major crypto exchanges and entities - however quite-importantly, it still resides on the side of caution when it comes to a few dubious platforms.
In turn, Monza has showcased itself as one of the most crypto-bullish banks out there- as was demonstrated through it being one of the few banks to continue supporting crypto deposits during the Binance crisis of June/July 2021.
Revolut (USA, UK, Majority of EU, and Beyond)
Renowned as one of the world’s most crypto friendly banks, Revolut is an international online bank boasting over 15 million customers from across the USA, UK, a significant portion of the EU, and beyond.
A straightforward Revolut account setup only requires a selfie and minimal personal information, further providing users with the convenience of launching an account with minimal effort. Here, a Revolut account includes a free Visa card that can be conveniently ordered through the app.
Revolut's stellar reputation in the DeFi space is underscored by its provision of direct on-app crypto purchase features. The platform has also evolved to permit crypto cash-outs from a vast array of 100+ exchanges, eliminating previous restrictions on crypto withdrawals.
Whilst lauded as one of the most crypto-friendly options, Revolut isn't necessarily that ‘crypto-cost-effective,’ as it features a base fee of 2.5% for crypto purchases (with an additional 0.5% for trades exceeding £1000). Here, users have the option to reduce these fees by upgrading to premium or ‘metal’ accounts, however the base fee only decreases to 1.5% here.
Regardless of such fee structure, Revolut remains as one of crypto traders’ most secure and reliable banking solutions.
Formerly known as ‘The Provident Bank,’ BankProv stands as the sole ‘traditional’ bank on this list. With a rich history spanning over 200 years, the bank has been able to distinguish itself from its ageing counterparts by rebranding as a FinTech leader with 'start-up vibes’.
While primarily focusing on business opportunities over personal accounts, BankProv also adopts a progressive approach to crypto services. In doing so, it hosts its own DeFi segment that features crypto as a dedicated service category. This includes not only the freedom to make crypto deposits, but also a notable partnership with Anchorage Digital to provide crypto-backed loans (specifically on Ethereum (ETH)).
Notably, these offerings come in complement to the bank's industry-leading API banking system, as well as its ProvXchange Network.
In line with others on this list, BankProv's formal crypto partnerships signal a long-term commitment to empowering users through crypto deposit allowances. In turn, such strategic orientation positions the bank as a forward-thinking institution that’s embracing the transformative potential of cryptocurrencies within TradFi.
Crypto Friendly Banks - Conclusion
As we wrap-up our exploration of the world’s most crypto friendly banks, it's important to note that our list is by no means exhaustive. Additionally, your own independent research - which will likely involve reviewing a company's news for crypto-related partnerships and updates - may uncover more crypto friendly banks.
Anyhow, as the gradual integration of crypto into mainstream finance continues, it’s crucial that both crypto traders and banks alike begin adapting to this evolution - and as demonstrated in this list, it appears that the latter has begun doing so.
Further, such movement may also signal not only the arrival of new TradFi banks jumping on the crypto trend, but also pre-existing crypto friendly banks expanding their DeFi services even further.
That being said, it's also essential to acknowledge the security concerns that come with digital banks. Here, if you wish to maintain a prudent approach to your finance diversification, consider tempering your transition into digital banks by retaining some level of traditional fiat dealings with your current bank. In turn, this should ensure a balanced mix of the best safety practices and flexibility within crypto trading.
In conclusion, the notion that banks should be embracing crypto-friendly stances is a sentiment worth remembering, as it ultimately demonstrates the sheer momentum in which crypto has garnered over the past few years. With this in mind, you should expect to stumble across more crypto friendly banks in the years to come.
Crypto Friendly Banks - FAQ
Is Monzo Bank crypto-friendly?
Certainly, as a Monzo customer, you have the flexibility to utilise various cryptocurrency exchanges, including Coinbase. Similar to all regulated banks, there may be occasional instances where we restrict a limited number of transactions due to risk considerations, however it’s important to note that this precautionary measure is applied across all transactions, encompassing not only those related to cryptocurrencies but all transaction types.
Does Revolut allow crypto?
You have the option to purchase crypto assets using the funds or e-money available in your Revolut account or by utilising crypto assets stored in your crypto asset pocket (available for "buy now" and "auto exchange" only). There are various methods for acquiring crypto assets, including the immediate "buy now" option, allowing you to purchase crypto assets instantly.
What UK banks are crypto friendly?
Based on current data, the likes of Revolut, Monzo, Xace, Cashaa, Orounda, Royal Bank of Scotland, NatWest, Nationwide, Barclays, Santander, Metro Bank, and Halifax are known to facilitate payments to particular crypto exchanges. However, it's worth noting that numerous users from traditional high street banks have reported encountering problems with blocked transactions.
Want More Cutting-Edge Crypto News?
Sign up to our newsletter at the bottom of the page
This article is intended for educational purposes and is not financial advice.