It’s a very welcomed sight when banks finally begin to realize how outdated they are and attempt to modernize. Quonic Bank from New York City bank however, has recently begun to do business with crypto companies. This puts the bank in the very limited list of US financial institutions who have begun to embrace the crypto sector.
Quonic Bank opened a checking account for a bitcoin ATM company last month. There are also ongoing negotiations to complete a contract to deliver banking services to another emerging crypto startup.
Steven Schnall, the chief executive of Quonic stated:
“We’re now taking steps in advance to insure, that whenever the regulatory environment changes positively, we are not required to catch up. It’s our goal to diversify both our product offering and our customers by stepping into the crypto sphere.”
Schnall also mentioned that the pending contract could positively impact millions of people in the United States. It’s unfortunate, but crypto-friendly banks seem to be incredibly rare. One large reason for that is due to the gargantuan work effort they have to put in order to comply with the know-your-customer (KYC) and anti-money laundering (AML) regulations.
Quonic is one of the first
There are only a handful banks in the United States who actually offer services to the crypto sector. In California there’s Silvergate and New York has Signature and Metropolitan Commercial.
Much like the institutions mentioned above, Quonic doesn’t even register on the global banking scale. The bank has “only” $420 million in assets, which is basically 0.15% of the size of JPMorgan.
Schnall seems to have a quite a bit of history with bitcoin. He purchased his first coin while it was priced at $75 back in 2013 and lost 500 BTC in the Mt Gox debacle.
Back in January 2018, along with the bank’s chief innovation officer Patrick Sells, Schnall built an Ethereum mining operation. Currently however, Schnall has stated that he is bullish exclusively on bitcoin.
The duo was even close to launching their very own cryptocurrency which was supposed to be separate from the bank which would have been named QCoin. They had everything lined up perfectly for an ICO, but the market crashed and the plans were quickly scrapped.
One interesting part about the management of Quonic is, that they gave the entire staff $20 in bitcoin while bitcoin was priced at around $3K. This was done in order to educate all employees on crypto and the bank is currently looking to hire mostly people with interest and experience in crypto.
Quonic has stated that crypto companies should know that its services are open to them. Along with many services, the bank holds very high standards for crypto customers.
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