A decade ago, when cryptocurrencies were slowly gaining momentum, it was inconceivable that one day they would be recognized by major financial institutions. Yet, nowadays, when the crypto industry’s market capitalization has surged to more than $1 trillion, there is definitely a trend among banks of embracing the innovative form of payment. In the United States alone, more banking organizations begin accepting or using cryptocurrencies every year. Read this article and find out about American banks that accept Bitcoin.
- The adoption of crypto-friendly laws by individual states led to the growing number of US banks that accept Bitcoin.
- Traditional financial institutions such as Bank of America and J.P. Morgan already offer crypto products to clients.
- Businesses do not need a bank account to accept crypto since they can do it directly using NOWPayments.
Why some banks don’t accept Bitcoin
Today, people are no longer surprised about Banks that accept bitcoin transactions. In fact, it would be reasonable to ask why some banks are still lagging behind the rest and refuse to accept cryptocurrencies. Yet, in many cases, everything comes down to laws. For instance, in the United States, there is no single framework which would clearly regulate cryptocurrencies. As a result, some banks are fearful of venturing into the unknown since the government or other regulatory bodies can easily shut their crypto operations down. Luckily, some states are gradually adopting new crypto-friendly regulations. For instance, Wyoming became the first state in the US to establish a state-chartered depository institution delivering banking services to blockchain-related businesses. It is possible that in the near future, as more states and jurisdictions create similar frameworks, more banks will warm to the idea of providing Bitcoin and crypto services.
Best crypto-friendly American banks
Nevertheless, there are still plenty of banks in the US that have made their commitment to offering crypto services to their clients.
- Bank of America
- J.P. Morgan
- Goldman Sachs
- Silicon Valley Bank
- Signature Bank
- Silvergate Bank
- Protego Trust Bank
Bank of America
Bank of America is an institution that does not need an introduction. The bank provides a complete range of banking, investing, and asset management services to its clients. The financial products of the bank are used by millions of people in the US. While Bank of America has a reputation as a conservative institution, it is beginning to catch up with modern times. According to reports, the bank recently started offering exchange-traded crypto products to a select number of its hedge fund clients. The enterprise is also forming its cryptocurrency research team to explore possible crypto-related products. It is likely that in the next year, Bank of America will expand its crypto solutions.
J.P. Morgan is another behemoth of American finance. The bank has experienced troubles in the past but still remains one of the leading financial institutions in the country, and apparently, it has serious intentions for entering the crypto market. In 2021, news emerged that the bank began providing all wealth management clients with a chance to access cryptocurrency funds. Namely, clients of J.P. Morgan now can request their financial advisors to execute crypto trades on their behalf. Currently, J.P. Morgan has approved only five crypto funds, four of which belong to Grayscale and include Bitcoin Trust and Ethereum Trust.
Perhaps, Goldman Sachs is the name many people think of when asked about the banking industry. Goldman Sachs earned its global notoriety during the financial crisis of 2008. Since then, the bank has paid a $5 billion settlement for its actions. Nevertheless, today, Goldman Sachs is looking for additional ways to improve its balance sheet and recently started offering Bitcoin trading products to clients. Since the bank cannot do it directly due to the unclear regulatory frameworks, it has partnered with Galaxy Digital to execute all transactions. For now, Goldman Sachs’ clients can only trade Bitcoin futures, but the bank may eventually expand its line of products soon.
Silicon Valley Bank
Silicon Valley Bank can certainly claim the prize for the coolest name in the industry. As the name suggests, it is a bank which is focused on providing solutions to high-tech companies located in and out of Silicon Valley. Since its beginning, the bank has funded more than thirty thousand start-ups, many of which went on to become unicorns, those with value over $1 billion. Silicon Valley Bank also assists companies that want to launch their own blockchains and cryptocurrencies or simply operate in the sphere of crypto finance. For instance, the bank funded one of the largest crypto exchanges, Coinbase, and its stake now can be worth more than $150 million.
Commercium is a bank that you probably have never heard of. Yet, in fact, it is one of the leading institutions driving the adoption of digital assets by the banking industry stakeholders. As mentioned earlier, Wyoming became the first state in the US to legalize the use of blockchain and cryptocurrencies by banks. Commercium is one of the first banks to receive Wyoming’s depository institution bank charter, which grants it the right to leverage digital assets legally. As of September 2021, Commercium has not yet begun its operation since it needs to acquire the last document to start working.
Signature Bank is another bank which does not get much coverage in the media. Nevertheless, the crypto reserves of the institution are practically staggering. In Q2 of 2021 alone, the bank has received more than $6 billion in crypto deposits from its clients. According to the bank’s CEO, more than half of the sum came from digital asset exchanges, while another $1.9 billion constituted stablecoin reserves. The bank also works with OTC desks and institutional traders whose deposits in Q2 also amounted to nearly $1 billion. Such a fast growth in the realm of digital assets reserves puts Signature Banks into the league of one of the most crypto-friendly institutions out there.
Silvergate Bank is quite similar to Signature Bank in the range of products which it delivers to its customers. According to the information on the bank’s official website, it serves more than 750 globally recognized crypto exchanges, institutional investors, and software developers in the sphere of fintech. The bank’s customers include Coinbase, Kraken, Paxos, Bitstamp, and many other big names in the crypto industry. One of the services provided by Silvergate is real-time USD settlement by counterparties which is utilized by many cryptocurrency exchanges. At the same time, institutional investors can open their bank accounts and utilize other services for leveraging their digital holdings.
Anchorage is another bank on the list which focuses on the provision of services related to the management of digital assets. Anchorage is perhaps the most accessible bank for an average person, yet in order to use its products, you still need to have substantial capital. Primarily, Anchorage serves institutional investors and retail investors with high net worth. Anchorage’s list of solutions is quite extensive. The bank facilitates custody, trading, staking, governance, and financing for its clients. It is already working in partnership with many notable players in the crypto segment and is looking forward to attracting even more clients.
The Avanti bank has recently joined the group of Wyoming-registered banks that accept Bitcoin and other cryptocurrencies. Avanti is planning on building a bridge between digital assets and traditional finance by enabling its clients to enjoy the benefits of the two systems. Avanti focuses on working with institutions that desire to achieve better regulatory clarity, protect their clients, and reduce transactional risks. The bank’s main customers include trusts, fintech organizations, notable digital asset traders, start-ups, and even pension funds. Since Avanti has a legal charter granted to it by the State Banking Board of Wyoming, it follows all regulatory requirements and is subject to crypto-related regulations.
Protego Trust Bank
Protego Trust Bank also has managed to secure a bank charter in Wyoming which enables it to manage digital assets legally. Thus, Protego is one of the few banks that accept Bitcoin deposits. Unfortunately, the scope of Protego is limited only to institutional clients. This means that Protego does not serve ordinary people wishing to invest their money in Bitcoin. Protego positions itself as a national bank that is capable of guaranteeing secure custody of its clients’ assets and empowering them to capture value through staking and trading of cryptocurrencies. Protego is approved by the US Department of the Treasury’s Office of the Comptroller of the Currency, which makes it a fully legal entity.
How to open Bitcoin bank account
In order to open a bank account with one of the aforementioned institutions, you need to fill out a form available on their respective official websites. Since all of the banks above are subject to regulations and laws of the United States, they all require undergoing a KYC procedure. Moreover, in order to start using their services, in many cases, you will need a substantial sum of money.
How to accept Bitcoin without a bank account
Nevertheless, there are solutions on the market that let businesses negate any kind of financial barriers to entry and begin accepting cryptocurrencies without paying any money upfront. NOWPayments is a service which provides effective solutions for deploying crypto payment gateways to any company that wishes to accept crypto.
You can use crypto invoices or special plugins (available for stores deployed on Shopify, WooCommerce, PrestaShop, and other platforms). You can also accept donations with the help of widgets, buttons, or links.
Unlike the banks presented above, NOWPayments does not store your money on its accounts and processes your payments instantly.
The list of Banks that accept Bitcoin is constantly growing. Both innovative fintech banks and traditional legacy institutions are entering the race for crypto clients. Yet, thanks to blockchain, there is no need to set up an account with banks to accept cryptocurrencies. Businesses and individuals can accept crypto payments and donations using services such as NOWPayments.