NEW YORK—A move away from cryptocurrencies by the largest banks is paving the way for smaller banks to take advantage of this new market, according to one report.
Smaller banks such as Silvergate, Cross River Bank, and Metropolitan Bank are now offering their customers premium crypto-focused banking solutions, reported Bitcoinist.
Silvergate’s asset base last year increased from $978 million to more than $1.9 billion. A significant portion of this revenue growth came from the over 250 cryptocurrency firms supported by the bank, Bitcoinist stated.
“Genesis Global Trading is one of Silvergate’s crypto customers. Genesis specializes in cryptocurrency trading, and according to CEO Michael Moro, the firm appreciates the services provided by the bank. According to Moro, Silvergate is a big believer in his company’s mission, and that helps to foster an excellent working relationship. The Genesis Global CEO also went on to say that crypto companies need banks to remain in business,” Bitcoinist explained.
Bitcoinist also noted that cryptocurrency has helped Metropolitan Bank increase its deposits without having to incur the cost of opening new branches. The bank’s 2017 revenue more than tripled the earnings of 2016.
The trend of small banks backing digital currency firms isn’t only limited to the United States. Major banks in Europe remain critical of Bitcoin and the crypto market in general. “Thus, smaller banks like Falcon and Vontobel in Switzerland as well as Fidor in Germany and Bank Frick in Liechtenstein have embraced the crypto market, offering a catalog of useful products and earning huge revenues,” Bitcoinist said.