First Ever: National Bank offers Crypto in your Checking Account

Key Points

• ‘Vast Bank’ in Oklahoma becomes first national bank to give consumers ability to buy crypto from their checking account
• Vast Crypto Banking is powered by SAP and Coinbase
• Study shows 50% of people indicated crypto banking preference over traditional exchanges
• Low fees, crypto custodianship, and insurance — all with the same experience as normal checking account
• Offers a few very unexpected crypto’s
• Changes the game for mass adoption
• CEO says “Whales have been waiting for a national bank to get involved”
• Bank holds $800 million in assets under management

Crypto banking is here, and before you shoot down the concept of allowing a bank to hold your keys, realize the massive step towards adoption an institution like Vast Bank can help drive. Vast Bank, operating out of Oklahoma since 1982, has announced the rollout of their new “crypto banking service”. With this, they will become the first ever national bank allowing consumers to “to Effortlessly Buy, Sell & Manage Cryptocurrencies 24/7 Directly with Their Bank Accounts–Combining the Benefits of Crypto with the Simplicity & Security of a Bank Account.”

This service is now available for all US consumers banking with Vast, and represents a massive step towards mass adoption for crypto. With the rollout of a user friendly application, Vast’s goal is to “simplify the buying and selling of cryptocurrencies directly with bank accounts, and provides users with the traditional personal banking experience they have come to expect from a leading financial institution.”

Brad Scrivner said customers have clamoring for a way to “securely purchase the likes of Bitcoin using their bank account.” Apparently, customers have cited concerns with trustworthiness, safety, and security of other traditional crypto platforms that we all have all come to know. Scrivner said these concerns have “kept many consumers parked on the sidelines of the crypto phenomenon.”

While this may puzzle some, it is clear that as the older demographic becomes enamored with crypto, they seek a more traditional invest route, such as a Bitcoin ETF. This is line with Vast’s concept, bringing crypto to the traditional banking system in a way that makes crypto as commonplace as any other asset or currency.

Notably, Vast bank only offers a handful of crypto’s: Bitcoin, Bitcoin Cash, Cardano (Ada), Ethereum (Ether), Litecoin, Orchid (OXT), and Algorand (ALGO). This insight into what traditional banks are offering is valuable; a nationally chartered bank would obviously be very choosy about which crypto’s they offer, and the above list is a clear indication of crypto’s that have been green-lighted in some sense, by regulators. 

Algorand and Orchid are very curious choices as they sit outside the top 30 in market cap. Most banks are wary of getting into crypto due to anti-money laundering concerns, and overall regulatory concerns. This step by Vast, is a clear vote of confidence that regulation will not be a concern for crypto going forward, and an special vote of confident in the seemingly random crypto’s they are choosing to offer. Vast confirmed this. We actually reached out to Vast Bank on Twitter for comment about the crypto’s they are deciding to offer. Below is their response. 

To bring more light to why they chose these specific crypto’s, Scrivner said: “We wanted to give institutions and individuals the confidence that this (service) is something they can participate in without feeling like they’re in the Wild Wild West.” Very telling. Scrivner also said he doesn’t want his bank to be “left behind” as demand for crypto soars. Interestingly, he said that “Whales, which are individuals or institutions that hold large amounts of cryptocurrency, have contacted Vast Bank looking to get involved.” “Whales have been waiting for a national bank to get involved.” 

He also highlighted that while national banks have been providing custody service for years, Vast has now created a “a safe and sound, highly regulated opportunity for banks to get involved in crypto.” This highly regulated part is interesting, and again, displays that their limited crypto offerings offer great insight into what protocols have been green-lit and “vetted” by federal authorities, more or less.

The announcement certainly foreshadows the future of banks and their involvement with crypto. The demand is there: a survey from Vast showed 50% of respondents who were interested in cryptocurrencies indicated that they would be more likely to choose a bank over other crypto platforms. Notably, it seems the whole operation is backed by Coinbase. “Your checking account USD is FDIC insured up to $250,000. Crypto assets are protected through an insurance policy provided by Coinbase.” This is certainly a big deal as Coinbase has emerged as far and away the biggest “darling” in the space, with massive institutional backing.

While you may not want to mix your crypto and your traditional banking, maybe your dad or mom would, and for adoption, that’s a good thing. Also, keep an eye on the crypto’s offered by Vast, they be the new cohort of crypto’s institutions are interested in.