Global financial institutions have shied away from taking on the crypto-based firms present in the sector and provide them with banking services..
However, now, Medici Bank is on the verge of joining banks that serve the crypto sector as it sets out to launch its bank. Per details online, Medici Bank has already found several institutions willing to partake its banking services once its bank goes live in October. However, it will be on a private beta mode. According to info online, Medici Bank will be working with five companies.
The five firms will be present on Medici Bank to test the platforms application interface, web portals, and its digital onboarding process.
Although Medici announcement didn’t mention the specific firms, either two or three of Medici first customers run businesses in the crypto sector. On the other hand, it seems one firm will be an exchange.
Medici is banking on Doing Business with These Five Clients to Extensively Test Its Platform
Due to the nature of crypto firms, Medici saw the need to bring onboard firms doing business in the crypto sector to test its bank functionality properly.
“Crypto firms are high throughput clients, and if we can meet their needs adequately, there’s nothing we can’t handle.” Ed Boyle, CEO of Medici.
With other banks not interested in doing business with crypto firms, the latter is giving banks such as Medici Bank with an optimum moment to move in and fill the gap. Basing on those lines, Medici Bank has set plans in motion to have a third or half of its business operations servicing the crypto sector. As such, Medici Bank has set out to increase its company size from the current six to 20 by the end of 2019, 50 by 2020 and come 2021, Medici plans to have 100 employees.
In addition to providing stakeholders in the crypto space with banking services, Medici has also partnered with other firms to analyze data through blockchain technology. Similarly, Medici Bank is in talks with other financial institutions to get all banks into one platform to enable share data via a centralized blockchain platform.
With its platform going live, Medici Bank will join Fidor Bank, Quontic Bank, Metropolitan Commercial, Signature and Silvergate bank in serving crypto firms.