“We’re looking to diversify our product offering and our customer mix by entering into [cryptocurrency.]"
A little-known, NYC-based bank called “Quontic” has become the latest of a handful of US-based financial institutions to have agreed to work with the cryptocurrency sector, according to a recent report from CoinDesk.
The bank, which has just $420 million in assets (JPMorgan,by comparison, has more than $30 trillion), opened a checking account for an unnamed Bitcoin ATM firm--its first crypto client--several weeks ago, and claims to be in contract negotiations to open accounts for another new cryptocurrency company, which was also unnamed.
Quontic CEO Steve Schnall told CoinDesk said that while the regulatory environment in the US isn’t the clearest or most conducive for relationships between banks and cryptocurrency companies, he is hoping that acting early will provide the bank with an advantage when regulations become more lucid: “we’re just taking steps so that when the regulatory environment becomes more crypto-friendly, we don’t have a lot of catching up to do,” he said.
“We’re looking to diversify our product offering and our customer mix by entering into that field.”
Why are US banks so afraid of crypto?
And indeed, the plan to diversify could attract a number of new crypto-industry customers to Quontic--the shortlist of US banks who are willing to work with the cryptocurrency industry is still so small that a number of new companies are eagerly searching for a reliable banking partner.
Why are banks so hesitant to accept crypto-industry clients? For one thing, it’s a lot more paperwork--banks have to do a more thorough KYC and AML process around cryptocurrency companies because of the ways that crypto companies may have raised their funds.
“If you have a startup that raised money doing an ICO and didn’t do proper KYC or AML, that bank doesn’t know who the proceeds are from,” said Joshua Klayman, head of the Blockchain and digital assets practice at law firm Linklaters, to CoinDesk.
The problem isn’t necessarily limited to the United States--the CEO of Credit Suisse previously said that the reason that banks have "little or no appetite" for getting involved with cryptocurrencies is because of the fears of market manipulation and connections with the illicit activity that still surrounds the cryptocurrency industry.
”You don’t have mom-and-pop financial institutions.”
However, so far, Quontic claims to be up to the challenge, pointing to the fact that it initially turned away its Bitcoin ATM client when it first approached the bank a year ago. But instead of cutting off contact, Quontic reportedly worked closely with the company for a year in order to properly prepare it to become a banking client.
“Crypto companies have to have strong controls, internal audit, and a very robust system of compliance,” Schnall said to CoinDesk. “You don’t have mom-and-pop financial institutions. You’re not going to have mom-and-pop crypto players of any significance.”
Quontic CIO to Finance Magnates: Bitcoin is “a universal Payments solution”
Additionally, Schnall seems to have been involved in the cryptocurrency industry long enough to operate undeterred by rumors of bad actors within the space. Schnall’s interest in cryptocurrency reportedly began in 2015, when he purchased his first Bitcoin for $75; since then, he has worked to educate Quontic’s employees about cryptocurrency, and at one point, even gave each employee a small amount of BTC to allow them to learn about how it works.
Schnall isn’t the only Quontic executive who seems to have a deep interest in Bitcoin. In March, Quontic Chief Innovation Officer Patrick Sells told Finance Magnates in an email that “Bitcoin has an important role to play in institutional investing. It’s an asset class and many institutions want some amount of exposure to all the different emerging assets.”
“Bitcoin is fundamentally a protocol for how finance could work,” he added. “It offers many benefits, such as the ability to easily send money, removing the cost of cash, sending money overseas, [and is] a universal payments solution.”
A little-known, NYC-based bank called “Quontic” has become the latest of a handful of US-based financial institutions to have agreed to work with the cryptocurrency sector, according to a recent report from CoinDesk.
The bank, which has just $420 million in assets (JPMorgan,by comparison, has more than $30 trillion), opened a checking account for an unnamed Bitcoin ATM firm--its first crypto client--several weeks ago, and claims to be in contract negotiations to open accounts for another new cryptocurrency company, which was also unnamed.
Quontic CEO Steve Schnall told CoinDesk said that while the regulatory environment in the US isn’t the clearest or most conducive for relationships between banks and cryptocurrency companies, he is hoping that acting early will provide the bank with an advantage when regulations become more lucid: “we’re just taking steps so that when the regulatory environment becomes more crypto-friendly, we don’t have a lot of catching up to do,” he said.
“We’re looking to diversify our product offering and our customer mix by entering into that field.”
Why are US banks so afraid of crypto?
And indeed, the plan to diversify could attract a number of new crypto-industry customers to Quontic--the shortlist of US banks who are willing to work with the cryptocurrency industry is still so small that a number of new companies are eagerly searching for a reliable banking partner.
Why are banks so hesitant to accept crypto-industry clients? For one thing, it’s a lot more paperwork--banks have to do a more thorough KYC and AML process around cryptocurrency companies because of the ways that crypto companies may have raised their funds.
“If you have a startup that raised money doing an ICO and didn’t do proper KYC or AML, that bank doesn’t know who the proceeds are from,” said Joshua Klayman, head of the Blockchain and digital assets practice at law firm Linklaters, to CoinDesk.
The problem isn’t necessarily limited to the United States--the CEO of Credit Suisse previously said that the reason that banks have "little or no appetite" for getting involved with cryptocurrencies is because of the fears of market manipulation and connections with the illicit activity that still surrounds the cryptocurrency industry.
”You don’t have mom-and-pop financial institutions.”
However, so far, Quontic claims to be up to the challenge, pointing to the fact that it initially turned away its Bitcoin ATM client when it first approached the bank a year ago. But instead of cutting off contact, Quontic reportedly worked closely with the company for a year in order to properly prepare it to become a banking client.
“Crypto companies have to have strong controls, internal audit, and a very robust system of compliance,” Schnall said to CoinDesk. “You don’t have mom-and-pop financial institutions. You’re not going to have mom-and-pop crypto players of any significance.”
Quontic CIO to Finance Magnates: Bitcoin is “a universal Payments solution”
Additionally, Schnall seems to have been involved in the cryptocurrency industry long enough to operate undeterred by rumors of bad actors within the space. Schnall’s interest in cryptocurrency reportedly began in 2015, when he purchased his first Bitcoin for $75; since then, he has worked to educate Quontic’s employees about cryptocurrency, and at one point, even gave each employee a small amount of BTC to allow them to learn about how it works.
Schnall isn’t the only Quontic executive who seems to have a deep interest in Bitcoin. In March, Quontic Chief Innovation Officer Patrick Sells told Finance Magnates in an email that “Bitcoin has an important role to play in institutional investing. It’s an asset class and many institutions want some amount of exposure to all the different emerging assets.”
“Bitcoin is fundamentally a protocol for how finance could work,” he added. “It offers many benefits, such as the ability to easily send money, removing the cost of cash, sending money overseas, [and is] a universal payments solution.”
Rachel is a self-taught crypto geek and a passionate writer. She believes in the power that the written word has to educate, connect and empower individuals to make positive and powerful financial choices. She is the Podcast Host and a Cryptocurrency Editor at Finance Magnates.
Australia Gears Up for Bitcoin ETFs: ASX Leads the Charge
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
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