American community bank The Provident Bank has begun offering deposit services to digital currency-related customers, according to an announcement published on July 9.
The Provident Bank now offers deposit and other banking services to cryptocurrency issuers, exchangers and investors. The bank deploys Bitfury’s blockchain analytics tool Crystal that maps cryptocurrency transactions and related entities to reveal suspicious funds and parties. Crystal will purportedly ensure that the bank’s new clients are compliant with the Anti-Money Laundering and Know Your Customer procedures.
Additionally, the bank claims to provide full insurance to customers’ deposits because of its affiliation with the Depositors Insurance Fund, wherein deposits could be insured up to $250,000. Dave Mansfield, CEO of The Provident Bank, said:
“The Provident team developed robust measures to ensure our strategy will not only be effective from a regulatory compliance perspective, but will also allow for our clients to have certainty in a long term banking relationship. That’s why we partnered with top U.S. technology companies to work with us on this new venture.”
Last month, news broke that Aon — a leading insurance broker that purports to occupy 50% of the crypto-insurance market — will reportedly provide cryptocurrency custody solutions provider Metaco with crime insurance coverage via a panel of London insurers.
In February, blockchain security firm and crypto wallet service BitGo revealed plans to offer crypto insurance through the well-known insurance firm Lloyd’s of London. BitGo Business Wallet clients are able to acquire insurance for their digital assets held on BitGo’s Business Wallet service and custodial offering, with assets held by either BitGo or BitGo Trust Company to be insured for up to $100 million.