Puerto Rico’s FV Bank has launched a service for account holders that lets them instantly convert Circle’s USD Coin into U.S. dollars upon deposit.
“This service will greatly reduce the friction of domestic, and especially, international settlements as the money transfer process becomes dramatically faster than the traditional banking sector,” the San Juan-based bank said in a Wednesday (Sept. 21) news release.
“Not only will money transfers be much quicker than traditional methods such as bank wires and drafts, this service will also be a cost-effective alternative and reduce the number of touch points per transaction, making receiving and sending funds significantly more straightforward,” per the release.
FV Bank is a digital bank that offers digital asset banking and custody service to blockchain firms and FinTechs.
The company says its new service lets account holders raise invoices to their international clients in USDC and receive it with no worry about things like wallets, conversions or fees.
“We couldn’t be more pleased to work with Circle and bring almost instantaneous deposits and conversion of USDC to our account holders,” FV Bank CEO Miles Paschini said in the release. “It was imperative for us to work with a stablecoin issuer who has an excellent track record and whose values align with our own.”
As PYMNTS reported last month, banks have hesitated to promote the use of cryptocurrencies for investments.
A survey of private global banks by the Basel Committee on Banking Supervision (BCBS) found that just seven of 178 banks had direct cryptocurrency exposure. While more than 100 of the banks performed crypto-related activity — like trading on clients’ accounts — none reported direct cryptocurrency holdings as long-term investments.
The report noted that due to traditional FIs’ lack of involvement, crypto trading and storage has been left primarily to unregulated crypto exchanges, creating a “shadow crypto financial system.” These exchanges have blossomed in tandem with the popularity of crypto.
And in spite of an incremental expansion of crypto exposure, banks still don’t see crypto as priority. According to the Federal Reserve, two-thirds of banks don’t see crypto-related products and services as a strategic imperative for growth.