Fueling the crypto ecosystem and beyond

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Sam SidhuPresident and CEO at Customers Bank

Crypto firms have tens of billions of dollars in cash and limited banking options. Regardless of regulatory concerns, enterprise-grade digital asset companies have significant technical requirements from their financial partners, including 24/7 real-time payments and cables connected to the API. As a result, the crypto industry has been vastly underbanked and the small subset of financial service providers that operate in the ecosystem have so far provided limited services.

Crypto exchanges, OTC bureaus, stablecoin issuers, and market makers execute thousands of trades per day and can’t wait for ACH or Telegraph settlements to redeploy their capital – they require trade settlement. in real time.

Innovative banking leaders, such as Customers Bank executives, determined how to meet the needs of these businesses and resolve regulatory issues in order to structure a product suite to deliver speed and scalability. Customers Bank is among the few financial institutions that have invested the time to learn what crypto customers need and have worked closely with regulators to undertake a lengthy risk management process to ensure a secure platform. .

Customers Bank launched the Customers Bank Instant Token (CBITTM), a symbolic representation of the USD, to allow crypto firms to settle their fiat transactions instantly, providing much greater capital efficiency.

For Customers Bank shareholders, the bank in the crypto industry and the support for an instant payment solution means the bank can generate huge, low-cost deposits that fund high asset growth with a profit margin. ‘significant net interest.

Security of assets is intrinsic to CBITTM. Customers can exchange dollars from their Demand Deposit Account (DDA) for our branded tokens. The dollars are deposited into an omnibus account which holds a number of dollars equal to the amount of CBITs for all customers. Customers can then send and receive CBITs, transactions that are settled in real time. When they are ready to convert CBITs back to dollars, the CBITs they exchange are burned into the blockchain and an equal amount of dollars is debited from the omnibus account and credited to the customer’s DDA. Every transaction (typing CBITTM, transaction in CBITTM, and engraving CBITTM for USD) happens instantly.

The bank has hired a cutting edge team made up of members from some of the top crypto and crypto-adjacent firms. The team actively collects deposits and partners with several of the biggest players in the crypto space to grow our robust and market-leading product portfolio and expand into the wider ecosystem. As of September 30, the bank had obtained more than $ 1.5 billion in non-interest-bearing deposits from a select group of leading cryptocurrency and digital asset institutions.

Customers Bank has a proven track record of competitive agility, which is at the heart of the bank’s operations. Despite our relative size, the bank was one of the main PPP lenders. This was achieved by partnering with and integrating leading fintechs quickly, which allowed the bank to be active in the digital PPP market months before most of the competition.

Customers Bank recognizes that many other industries can benefit from its secure real-time payments by Ethereum blockchain. The platform has an immutable blockchain to provide customers with accurately recorded and reconciled transactions. Although the focus is currently on the crypto ecosystem, secure instant transaction settlements provide many benefits to other industries that conduct large volumes of transactions, including commercial real estate, healthcare, hospitality, insurance, accounting, alternative energy, and manufacturing and shipping supply chains. This same technology will also be available to all industries when manufacturers, wholesalers, retailers and service providers are ready.

Helping enterprise-level businesses integrate further through blockchains benefits all parties: banks, regulators, consumers and, most importantly, the customers themselves.

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