Why Crypto Startups Need Banking Services, and Banks Need Crypto Too
Bitcoin and cryptocurrencies are supposed to be a gateway that gives the unbanked access to the world’s financial system. Yet crypto startups, trying to adopt and promote those same ideals through the way they conduct business, are finding it challenging to access traditional financial services and payment processing.
After all, most banking institutions still won’t provide services to companies operating in the crypto space. While those banking institutions may recognize the opportunity to continue earning fees and interest off of those crypto companies, many of them still view crypto as high risk, and a threat to the business models that traditional institutions are built on.
While hundreds of smaller banks intend to offer crypto to their customers as a way to hold onto some of the transactions they see heading to Coinbase, Kraken and the like, major banks like JP Morgan and Bank of America still aren’t serving retail customers or crypto-related businesses.
Thirteen years after the Bitcoin whitepaper was published, Mastercard, a company with more than 2.8 billion cards activated around the world, announced just this October that banks and other financial institutions doing business with the company will soon be able to offer crypto services. Until now, those businesses simply couldn’t get access to banking.