5 Best Crypto Banks in 2024

Many banks are adopting cryptocurrency directly or indirectly, but Benzinga's experts have suggested Bank of America, RBS, Ally Bank, Monzo, and JP Morgan Chase as the top choices.

The world of finance is changing rapidly, and cryptocurrencies are no longer on the fringe. In 2024, we're seeing a surge in crypto-friendly banks catering to the growing demand for secure and convenient digital asset management. This blog will explore the best options, helping you find the perfect crypto bank for your needs.

Quick Look: The Best Crypto Banks

• Best for U.S. Investors: Bank of America
• Best Regulated: Royal Bank of Scotland (RBS)
• Best for Pricing: Ally Bank
• Best for International Transaction: Monzo
• Best for Risk Management: JP Morgan Chase

The Best Crypto Banks

Here is our list of the best crypto banks in 2024:

1. Best for U.S. Investors: Bank of America

Bank of America is a major bank that operates globally, especially in the U.S. It offers lots of different banking services for people and businesses.

With Bank of America, you can transfer U.S. Dollars (USD) to approved crypto exchanges. The bank works with crypto exchanges that follow the rules set by FinCEN, a U.S. government agency that fights financial crimes.

Here are some key features of Bank of America:

• They offer credit cards with rewards like cashback and travel perks.
• You can choose from different types of accounts, including ones for students and young adults and accounts that earn you more interest.
• They have a mobile app and a website you can use to manage your money.
• You can also use their website to invest in stocks and other things, and they give you information to help you make smart decisions.

2. Best Regulated: Royal Bank of Scotland (RBS)

The Royal Bank of Scotland (RBS) is a major bank in Scotland that operates in retail and commercial banking. As part of the Natwest Group, which also includes Natwest and Ulster Bank, RBS has a long history dating back to its founding in Edinburgh in 1727, making it the oldest surviving bank globally.

The Royal Bank of Scotland takes a cautious approach to cryptocurrencies. Similar to many other banks, it permits customers to use their online banking accounts to buy, sell, and trade cryptocurrencies and digital assets; however, these transactions are limited to regulated cryptocurrency exchanges.

Here are some notable aspects of The Royal Bank of Scotland:

• They offer three distinct business checking options.
• They provide investment advice and financial planning services.
• The bank adheres to a wide range of regulatory requirements.
• Their online and mobile banking platforms are available for customer use.
• Various financial products are offered, including current and savings accounts, mortgages, loans, credit cards, investment products, and loyalty cards.

3. Best for Pricing: Ally Bank

Ally Bank is an online bank that provides a range of financial services through its user-friendly digital platform. While it doesn't offer direct cryptocurrency services, Ally Bank permits customers to link their accounts with external cryptocurrency exchanges for transactions.

Here are some key features of Ally Bank:

• Online-only banking platform that's easy to navigate and use.
• Offers various features such as bill payment, account transfers, and mobile check deposits.
• Provides 24/7 customer support for assistance.

4. Best for International Transactions: Monzo

Monzo, a digital banking platform, provides a range of banking services tailored for individuals and businesses. It stands out as one of the leading challenger banks in the UK, renowned for its innovative features and user-friendly mobile app.

While Monzo Bank doesn't offer direct cryptocurrency investment options within its banking interface, it enables account holders to access the crypto market. This is facilitated by allowing the transfer of GBP to regulated cryptocurrency exchanges.

Key features of Monzo include:

• Savings and Investment Pots.
• The Salary Sorter feature assists users in allocating their salary to spending, saving, and bills.
• Users can set spending budgets for different categories, enhancing budgeting capabilities.
• The bank offers automated savings features such as roundups and scheduled savings pots.

5. Best for Risk Management: JP Morgan Chase

JP Morgan Chase stands out as one of the few banks in both the USA and the UK that are friendly toward cryptocurrencies, offering an expanding array of financial services in the crypto sector. As one of the largest banks globally, JP Morgan Chase is actively embracing the emerging crypto banking industry. It has introduced JPM Coin, which facilitates cross-border payments and provides its customers access to leading digital asset firms.

Here are the Key Features of JP Morgan Chase:

• Operating in the USA and UK.
• Offers digital asset custody and access to crypto trading, lending, and transaction processing.
• Includes popular options like SHIB and XRP, among others.
• Provides top-quality research insights into the crypto market for its customers.
• Maintains a strong commitment to compliance and risk management.
• Use of JPM Coin: Utilizes native JPM Coin for internal transactions.
• Holds a solid reputation as one of the world's leading banks.

What Is a Crypto Bank?

A crypto bank is a financial institution tailored specifically for cryptocurrencies and digital assets. These banks bridge the gap between traditional banking and the crypto market, offering users a secure and regulated environment to manage both digital assets and traditional currencies.

Their main role is to facilitate the buying, selling, and holding of cryptocurrencies, often with features like in-app trading, staking, and cryptocurrency wallets. Some also provide traditional banking services such as checking accounts and debit cards, with the added perk of earning rewards in cryptocurrencies.

Compared to traditional banks, crypto banks focus more on the digital asset space and typically have more flexible policies regarding cryptocurrency transactions. Traditional banks may impose stricter regulations due to concerns over fraud and scams, as seen with JP Morgan Chase's UK retail bank banning crypto transactions.

Leading crypto banks offer various services catering to crypto users, including in-app trading, crypto wallets, and cashback rewards in cryptocurrencies. They aim to simplify asset management and crypto market engagement, often offering competitive exchange rates and lower fees than traditional banks.

How to Pick the Best Crypto Bank

Here are the key aspects to weigh when deciding on the optimal crypto bank for your requirements:

• Security and Reliability: Opt for a crypto bank with a proven history of safeguarding user funds. Ensure they implement robust security measures like multifactor authentication, cold storage for digital assets, and insurance coverage.
• Supported Cryptocurrencies: Confirm the array of cryptocurrencies supported by the bank. Verify that the bank accommodates those coins if you intend to deal with specific digital assets.
• Liquidity: Ensure the crypto bank maintains adequate liquidity for seamless transactions, minimizing price slippage or delays during buying and selling.
• Fees and Expenses: Compare the fees associated with various services, including account maintenance, crypto transactions, and withdrawals. Seek a bank with transparent and competitive pricing.
• Regulatory Compliance: Select a crypto bank that operates within the legal framework of your jurisdiction, adhering to anti-money laundering (AML) and know-your-customer (KYC) regulations.
• Additional Features: Evaluate supplementary features like crypto-backed loans, staking rewards, and earning interest on digital assets, which can enhance value and convenience.
• User Experience: Assess the overall user experience, encompassing the usability of their mobile app or web platform, quality of customer support, and user satisfaction levels.

By weighing these factors, you can choose the best crypto bank aligned with your needs, preferences, and risk tolerance, ensuring a secure and hassle-free management of your digital assets.

Pros and Cons of Crypto-Friendly Banks?

Here are the key pros and cons of crypto-friendly banks:

Pros

• Simplifying Crypto Management: Crypto-friendly banks streamline the complexities of managing and transacting in digital assets, providing user-friendly interfaces and integrated services for a seamless experience in the crypto world.
• Seamless Cash-Out Processes: Crypto-friendly banks facilitate smooth cash-out processes, empowering users to liquidate their digital asset holdings when needed, thereby enhancing liquidity and financial flexibility.
• Business Support in the Crypto Space: These banks cater to businesses entrenched in the blockchain and crypto space, offering business accounts, integrated payment solutions, and tailored financial services to support crypto-centric enterprises.
• Mobile Apps for On-the-Go Access: Many crypto-friendly banks provide intuitive mobile apps, allowing users to access their accounts and manage their digital assets on the go, making it convenient to stay connected with the crypto market.

Cons

• Premium Charges for Crypto Services: Crypto-friendly banks may charge higher fees for crypto-related services compared to traditional wallet transactions.
• Limited Functionality: The functionality of crypto-friendly banks is often limited to trading and holding cryptocurrencies, restricting customers to specific services.
• Regulatory Uncertainty: The regulatory landscape surrounding cryptocurrencies is constantly evolving, and crypto-friendly banks may face challenges in adapting to changing regulations across different jurisdictions.
• Potential Security Risks: While crypto-friendly banks prioritize security, there is always a risk of cyberattacks or data breaches that could compromise the safety of digital assets held by these banks.

Top Picks Concluded: Leading Crypto Banks of 2024 for Seamless Digital Asset Management

Crypto banking is on the rise in 2024. New banks are popping up that cater to people who use crypto. They offer easy-to-use apps and services for buying, selling, and managing crypto. While it's a great step toward wider crypto use, there can be fees and security risks to consider. Overall, these crypto-friendly banks are a big step in the right direction.

Frequently Asked Questions