Customers Bank Veers Into Crypto With Transfer Token, $1.5B in Crypto-Related Deposits

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Pennsylvania-based Customers Bank has began onboarding its first cryptocurrency companies, providing these companies use of a digital asset funds platform plus the financial institution’s personal inside digital fiat token.

As such, Customers Bank will compete with Silvergate in California, Signature in New York and solely a handful of others brazenly providing crypto companies primary accounts, in addition to a blockchain-based platform for shoppers to immediately ship one another {dollars} 24/7.

Read extra: Another US Bank Joins the Small List Willing to Serve Crypto Companies

The Tuesday announcement makes good on Customers’ promise to serve the crypto business again in August of this yr.

The financial institution, a $19.1 billion subsidiary of Customers Bancorp, stated it had onboarded cryptocurrency buying and selling companies Genesis Trading (which shares a guardian firm with CoinDesk), Blockfills, GSR and SFOX.

“We’re proud to be attracting these best-in-class organizations,” Customers Bank CEO Sam Sidhu stated in a press release. “And are confident that we can provide the much-demanded fiat currency ‘on and off ramp’ for institutional clients in the crypto ecosystem.”

Customers coin

The Customers Bank-branded CBIT token and a digital fiat fee system dubbed TassatPay bear some similarity to JPMorgan’s Onyx blockchain and far fêted JPM Coin – regardless of being simply 0.52% the scale of the New York-based megabank.

Customers Bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC), introduced $1.5 billion of zero-cost deposits from crypto enterprise in its Q3 earnings report issued Oct. 28.

Sidhu stated the financial institution’s digital fiat rails will develop to serve different verticals apart from crypto.

“We see very beneficial applications for real-time B2B payments options in commercial real estate, healthcare, hospitality, insurance, accounting, alternative energy, and manufacturing supply chains,” he stated.