Republic plans to transform BankProv’s Banking-as-a-Service (BaaS) offering, outsourced from financial technology company Treasury Prime. Through this new partnership, Republic will use Treasury Prime’s API-based financial services to provide escrow accounts to BankProv customers.
Commenting on the new partnership, BankProv CEO Dave Mansfield said:
“Our focus on developing customer-tailored professional Banking as a Service (BaaS) technology enables us to bring industry-first solutions to underserved markets.”
The new escrow service allows BankProv’s corporate clients to collect project funding in cryptocurrencies and fiat currencies.
BankProv is a subsidiary of the 200 year old Provident Bancorp and legally operated as a Provider Bank. BankProv defines itself as a ‘future-proof commercial bank’ for corporate clients. Its services revolve around cryptocurrencies, renewable energy and innovative financial technology.
The bank offers Bitcoin ATMs, crypto-backed lending options, crypto deposit solutions, and US dollar accounts for crypto-native businesses. That escrow account is a new addition to the bank’s crypto services.
Crypto Banks vs. Crypto Friendly Banks
The crypto space still lacks a comprehensive regulatory framework, making it difficult to determine what constitutes a crypto bank. In the United States, any institution can use the title “bank” as long as it is licensed to hold US dollars. In this regard, a bank with crypto integration cannot be considered a crypto bank.
A new generation of banks like Revolute, JunoWhen ally We offer banking solutions and crypto integration. For example, Revolut allows users to access and trade cryptocurrencies and stock markets from the platform. Ally has his Coinbase integration, allowing users to link their bank accounts and credit cards to her Coinbase wallet and use them to trade cryptocurrencies. Meanwhile, Juno will show interest in his USDC savings, allowing users to convert their paychecks into cryptocurrencies.
Some argue that just allowing users to hold cryptocurrencies and become cryptocurrency banks is enough. Others, such as Professor Dan Orley of Cornell University Law School, think The term cryptobank “guarantees a specific meaning”.
Awrey doesn’t specify what that specific meaning refers to, but we can say that BankProv does. taller than It has embraced crypto more than other new generation banks and comes closest to being called a crypto bank. It offers USD accounts to crypto companies and crypto-backed lending options that banks do not.