Top Crypto-Friendly Banks for 2024: Monzo, Revolut, Wirex

The Rise of Crypto-Friendly Digital Banks

In recent years, cryptocurrencies have gained significant popularity and have become a mainstream investment option for many individuals. While it may seem that the purpose of crypto is to do away with traditional banks completely, the reality is that banks still serve as an essential fiat on and off-ramp for a vast majority of crypto holders and traders. Traditional brick and mortar banks may be slow with crypto adoption, but many digital-only neo banks have rushed to fill this gap. In this article, we will take a look at the top crypto-friendly digital banks currently available.

Monzo: The British Online Bank

Monzo is a British online bank based in London and is one of the first movers in the digital-only banking sector to challenge traditional players. With over 7 million users as of January this year, Monzo is popular among individuals seeking a modern banking experience. While Monzo accounts are fully authorized by the UK government and insured for up to £85,000 per account, they do not provide native cryptocurrency services. Instead, they allow fund transfers to regulated crypto exchanges in the UK, such as coinbase. However, it’s worth noting that Monzo does not support transfers to popular exchanges like binance, which may make it unsuitable for many users. Additionally, Monzo is only available to those based in the UK with a valid UK address.

Alli Bank: The US-based Online Bank

For individuals in the US, Alli Bank is another online bank worth considering. Founded in 2009 and based in Utah, Alli Bank currently boasts 11 million customers and $154 billion in deposits. It offers competitive interest rates on its savings accounts, money market accounts, and certificates of deposit (CDs). Alli Bank is FDIC insured, meaning all deposits up to $250,000 per depositor for each qualifying account category are protected. While Alli Bank does not offer spot crypto trading directly on its platform, it does offer various crypto-based investment products such as crypto trusts, bitcoin futures, ETFs, and crypto stocks. Similar to other banks, Alli Bank also allows fund transfers to regulated crypto exchanges.

Wrex: The Crypto-Centric Payment Platform

Wrex is a mobile payment platform based in London and founded in 2014. While it isn’t technically a bank, Wrex markets itself as a web3 money app and offers a variety of crypto-related products and services. With over 5 million users, Wrex is probably the most crypto-centric payment platform on our list. However, it does not benefit from state deposit insurance, so users should be aware of the risks involved. Wrex provides services via its mobile and web apps, including exchanges for over 50 fiat and cryptocurrencies, fiat and crypto payments, as well as various saving, lending, borrowing, and reward programs. It also has a native token, WXT, which is used for subscription payments and other rewards. Wrex offers different product tiers, ranging from their free standard plan to their premium or elite plans, which come with additional features and benefits.

Revolute: The Popular Neo Bank

Revolute is a neo bank and fintech company founded in 2015 and based in London. With over 18 million customers worldwide, Revolute is available to residents of the European Economic Area, Australia, Singapore, Switzerland, Japan, the UK, and the US. Revolute has a suite of crypto services, including buying, selling, and transferring crypto directly from the app, price alerts, and crypto learn and earn programs. They also offer investing with crypto collections, which are indices of the 100+ available cryptos grouped into different sectors. Similar to Wrex, Revolute’s crypto services are not regulated or deposit insured. Crypto custody is provided with cold storage via third-party custodians, where private keys are not connected to the internet. Revolute operates as a bank regulated by the Bank of Lithuania in the EU and EA, and customer funds are covered up to €100,000 in total per depositor in the event of its failure. However, in other countries where it is available, it is not a bank and regulated differently.

Conclusion

While there are not many platforms that provide a one-stop-shop for fiat and crypto services, online-first and online-only neo banks are likely to be faster in adopting crypto than traditional incumbents. Monzo, Alli Bank, Wrex, and Revolute are just a few examples of digital banks that offer crypto-friendly services. However, it’s important to consider the specific terms and conditions of each bank and the regulatory framework in your country before making a decision.

Frequently Asked Questions

1. Are these digital banks available worldwide?

No, the availability of these digital banks varies depending on the country. Monzo is only available in the UK, Alli Bank is available in the US, Wrex is available in over 40 countries, and Revolute is available in the European Economic Area, Australia, Singapore, Switzerland, Japan, the UK, and the US.

2. Do these digital banks offer native cryptocurrency services?

No, these digital banks do not offer native cryptocurrency services. They primarily serve as fiat on and off-ramps for crypto transactions and allow fund transfers to regulated crypto exchanges.

3. Are the funds deposited in these digital banks insured?

The level of deposit insurance varies depending on the bank and the regulatory framework in the country. Monzo accounts are insured for up to £85,000 per account, Alli Bank is FDIC insured up to $250,000 per depositor, and Revolute offers coverage up to €100,000 per depositor in the event of its failure in the EU and EA.

4. Can I transfer crypto out of these digital banks?

Yes, you can transfer crypto out of these digital banks to your own self-custodial wallet, depending on the bank’s policies and regulations in your country.

5. Do these digital banks support transfers to popular crypto exchanges like Binance?

No, not all digital banks support transfers to popular crypto exchanges like Binance. It’s important to check the specific supported exchanges of each bank before making a decision.