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Crypto-adaptive commercial bank BankProv is collaborating with crowdfunding marketplace Republic to offer escrow accounts to BankProv customers who want to raise funds on their platforms.
Republic will be modifying BankProvās Banking-as-a-Service (BaaS)service, which was outsourced from financial technology company Treasury Prime. With the new collaboration, Republic will use Treasury Primeās API-based financial services to offer escrow accounts to BankProv customers.
BankProvās CEO Dave Mansfield commented on the new partnership and said:
āOur focus on developing specialized Banking as a Service (BaaS) technology tailored for our customers allows us to deploy industry-first solutions to underserved markets.ā
With the new escrow service, BankProvās corporate clients can collect fundraising for their projects in crypto and fiat money.
BankProv
BankProv is a 200-year-old Provident Bancorp subsidiary and legally operates as the Provident Bank. BankProv defines itself as the āfuture-ready commercial bankā for corporate clients. Its services revolve around crypto, renewable energy, and innovative financial technologies.
The bank offers Bitcoin ATMs, crypto-backed lending options, crypto deposit solutions, and USD accounts for crypto-native companies. Its escrow accounts will be a new addition to the bankās crypto services.
Crypto Bank vs. Crypto-friendly Bank
Since the crypto space still lacks a well-rounded regulatory framework, it is difficult to tell what makes a crypto bank. In the U.S., any institution can use the title ābankā as long as it is licensed to hold U.S. dollars. In this respect, banks that have crypto integrations canāt be considered crypto banks.
New-generation banks like Revolut, Juno, and ally offer banking solutions and crypto integrations. Revolut, for example, allows its users to access and trade crypto assets and the stock market from its platform. Ally has a Coinbase integration, where users can link their bank accounts or credit cards to their Coinbase wallets and use them for trading crypto. On the other hand, Juno offers interest on savings in USDC and allows users to convert their paychecks to crypto.
Some argue that it is enough to allow users to hold crypto to become a crypto bank. Others, like Cornellās Law School Professor Dan Awrey, think the term crypto bank āensures a concrete meaning.ā
While Awrey doesnāt specify what that concrete meaning would refer to, it is possible to say that BankProv has higher crypto-adoption than other new generation banks and is most close to being referred to as a crypto bank. Even though it may still not be enough to be called a crypto bank, BankProv offers USD accounts to crypto companies and crypto-backed lending options, which other new-generation banks do not provide.
The post Crypto-adaptive BankProv inks deal with Republic to offer escrow accounts appeared first on CryptoSlate.
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