Despite the challenges, BankProv remained committed to its mission of bridging traditional finance and crypto. The bank fully pulled out from the crypto industry in 2023.
Founded | 1828 |
Headquarters | Amesbury, Massachusetts |
Website | https://bankprov.com/ |
Target clients | Institutional; Traditional |
Employees | N/A |
Market cap | $500 million |
Daily volume trading | |
Revenue | $1.65 billion |
Fiat supported | EUR, USD |
Cryptocurrencies | N/A |
Pricing Plans | |
Cryptocurrency Fees |
Tokenization services | |
Offers Bitcoin ETF | |
Staking services | |
Interest on savings | N/A |
Crypto Custody | |
Crypto Trading |
Invoicing service | |
Payments Services | |
Cards | |
API | |
Insurance Coverage | |
Interest on savings | N/A |
Crypto licenses VASP | |
Banking licenses (IBAN) | |
Money Transmitter or E-Money Licences | Federal Deposit Insurance Corporation (FDIC), Depositors Insurance Fund (DIF), State and Federal Banking Regulations, AML and KYC Policies. |
As the cryptocurrency continues to grow in popularity, a certain type of financial institution is growing in popularity as well – crypto banks. These banks combine traditional banking services with the modern features of cryptocurrency. This way, they create a bridge between the two worlds. Crypto banks aim to provide solutions for individuals and businesses involved in cryptocurrencies, offering many services. Some of them are secure storage, easy transactions, and access to traditional banking tools.
One crypto bank is BankProv, a US-based bank that has embraced the opportunities in the crypto industry. BankProv stands out for its ability to serve both traditional customers and those involved in crypto. It offers services designed to the unique needs of crypto users, such as accounts for crypto businesses and tools to manage both fiat and crypto. By this approach, BankProv is aiming to become the go-to option for people entering the crypto world with a trusted banking structure.
But what makes BankProv different from other banks? How does it meet the needs of crypto users while still operating as a reliable financial institution? In this article, we’ll explore what BankProv has to offer, including its features, services, and fees. We’ll also take a closer look at its role in the cryptocurrency ecosystem.
Whether you’re a crypto OG, crypto business, or a user that is just starting out, this guide will help you understand how BankProv is creating a space where traditional banking and cryptocurrency come together.
BankProv, formerly known as The Provident Bank, has its roots dating back to 1828. This makes it one of the oldest community banks in the United States. With a rich history of serving the financial needs of its local community, BankProv has evolved to meet the changing landscape of banking. They are one of the few old banks embracing innovation while maintaining its commitment to customer service. Today, BankProv operates as a subsidiary of Provident Bancorp, Inc. Its headquarters are in Amesbury, Massachusetts, and it has multiple branches across the Northeastern United States. With assets exceeding $1 billion as of 2024, the bank has grown into a trusted partner for individuals and businesses alike. What sets BankProv apart is its willingness to adopt innovative practices, including a strong focus on cryptocurrency.
BankProv’s mission is clear: to empower individuals and businesses by providing forward-thinking banking solutions that connect traditional finance with the future. It offers services designed to meet everyday banking needs while also catering to the growing demand for cryptocurrency-related solutions. Whether you need traditional financial services or are exploring opportunities in crypto, BankProv offers a platform that supports both. This blend of innovation and reliability positions BankProv as an emerging leader in crypto banking. However, we must note that there is fierce competition in this sector, and crypto banks like Amina Bank, Bank Frick, and Baakt Bank are far outpacing BankProv. In December 2021, the bank partnered with CrossTower to develop a crypto lending platform, aiming to meet the growing demand for borrowing against crypto. This collaboration was the first of its kind of BankProv. The bank intended to provide clients with access to the crypto market through a sophisticated lending business. However, they entered the market at the end of the 2021 bull cycle, leading to losses. One important fact to mention is that BankProv has officially exited the crypto industry back in 2023.
BankProv offers a variety of features designed to meet the needs of individuals and businesses. While they are focused on traditional banking, they often blend it with innovative solutions for the cryptocurrency market. Here’s a closer look at its key features:
BankProv’s journey into cryptocurrency began as part of its broader strategy to embrace innovation. Nevertheless, they wanted to embrace while staying true to its community banking roots – not an easy task. Seeing the rapid growth of crypto, BankProv identified an opportunity to bridge the gap between the two worlds. The bank began offering specialized accounts for cryptocurrency businesses, addressing the unique challenges faced by these companies, such as regulatory hurdles and difficulties in securing banking partners.
One of BankProv’s first moves came in December 2021 when it partnered with CrossTower – a former cryptocurrency exchange. BankProv, in collaboration with CrossTower, wanted to develop a lending platform. This platform allowed businesses to borrow funds by using crypto as collateral, providing access to liquidity in a highly volatile market.
Around the same time, BankProv joined forces with Anchorage Digital, a leading crypto custody provider. This collaboration made it possible for BankProv to offer Ethereum-backed loans. Moreover, it enabled clients to secure loans using Ethereum while maintaining insured deposits. This initiative was a successful attempt at blending traditional banking security with the flexibility of crypto-backed lending.
Despite these innovative steps, BankProv faced challenges as it navigated the crypto market. In late 2022, the bank reported significant losses, with a $27.5 million write-down linked to its exposure to the crypto mining industry. Many of its loans were secured by mining rigs, which rapidly depreciated in value due to the major crash of 2022 and rising energy costs. As a result, BankProv had to repossess mining equipment to offset the loan defaults, leading to losses.
This setback forced the bank to reevaluate its strategy. BankProv decided to halt loans backed by crypto mining rigs and focus on diversifying its portfolio. This move was intended to reduce exposure to the volatility of the crypto market while still supporting other aspects of the same market.
Despite the challenges, BankProv remained committed to its mission of bridging traditional finance and crypto. The bank continued to provide specialized accounts and compliance expertise to cryptocurrency businesses, helping them navigate the complex regulatory landscape. By leveraging its deep experience in traditional banking, BankProv offered crypto clients a level of stability and expertise that is often hard to find in the sector.
BankProv’s entrance into crypto banking underscores both the opportunities and risks inherent in the industry. While the bank’s partnerships and innovative offerings have demonstrated the potential for collaboration between traditional banking and crypto, its challenges highlight the importance of cautious and diversified strategies. The crypto market’s volatility and regulatory uncertainty remain significant hurdles. This might change in 2025, though. Europe has already introduced the MiCA framework – the first clear regulatory framework for crypto in the EU. Moreover, the US President-elect is pro crypto, and most of its cabinet are pro crypto as well. This might help push regulations that help the crypto industry, as well as banks looking to enter the market; just like BankProv.
As the cryptocurrency sector continues to mature, BankProv is well-positioned to adapt and grow alongside it. While its first attempt went horribly wrong, the bank’s ability to innovate, collaborate with industry leaders, and maintain its traditional banking strengths makes it a unique player. While setbacks are part of any effort to change and grow, BankProv’s willingness to learn and evolve ensures it will remain a key player in this sector.
BankProv places a high priority on regulatory compliance, especially in the cryptocurrency space, which is heavily regulated. The bank operates under the supervision of the Federal Deposit Insurance Corporation, which ensures that deposits are insured up to $250,000 per depositor. This gives customers added security and confidence in their bank accounts.
In addition to FDIC oversight, BankProv follows all applicable state and federal banking regulations. This means that it complies with the laws and guidelines set by authorities to ensure the bank’s operations are transparent and trustworthy. By adhering to these regulations, BankProv ensures it operates within a secure and legally compliant framework.
Another key aspect of the bank’s regulatory practices is its strong Anti-Money Laundering (AML) and Know-Your-Customer (KYC) policies. These policies help prevent illicit activities such as money laundering or fraud by verifying the identity of customers and monitoring transactions for suspicious behavior. This commitment to AML and KYC ensures that BankProv can offer secure services while protecting the broader financial system. The most notable licenses of BankProv are:
BankProv faced a challenging year in 2024 as it worked to recover from setbacks tied to its previous involvement in cryptocurrency services. Despite its efforts to balance traditional banking with innovative strategies, its financial performance reveals a more cautious approach.
Total Assets: As of September 30, 2024, BankProv’s total assets stood at approximately $1.65 billion, reflecting a slight decline from $1.67 billion at the end of 2023. This indicates a focus on stabilizing its portfolio after reducing exposure to volatile markets like cryptocurrency.
Net Income: The bank reported a net income of $716,000 for the third quarter of 2024, a notable decrease compared to $2.5 million in the same quarter of 2023. For the first nine months of 2024, net income totaled $2.4 million, down significantly from $8 million in the corresponding period of 2023. These figures highlight the impact of strategic restructuring efforts.
Crypto-Related Revenue: BankProv exited its crypto-related lending services in 2023 after incurring substantial losses, including a $35 million write-down linked to loans secured by cryptocurrency mining equipment. As of 2024, the bank no longer generated revenue from cryptocurrency services.
Deposit Growth: Deposits declined slightly in 2024, with total deposits at $1.29 billion as of September 30, compared to $1.33 billion at the end of 2023. This indicates that while the bank retains customer trust, its overall deposit base has contracted modestly.
Efficiency Ratio: Although specific details on the efficiency ratio are unavailable, the bank’s focus on managing resources while restructuring suggests ongoing efforts to improve operational efficiency.
BankProv entered the crypto industry at a bad time, resulting in losses for the bank. Despite the losses, the bank kept expanding their crypto services throughout 2021 and 2022. However, as of 2025, BankProv has strategically shifted its focus away from cryptocurrency-related services.
In 2023, BankProv began unwinding its crypto holdings and exited its remaining digital asset lending relationships, fully eliminating its exposure in this area. This decision was influenced by significant financial setbacks, including a $35 million loss in its cryptocurrency mining loan portfolio. Consequently, the bank has redirected its efforts toward more traditional banking services, notably commercial real estate (CRE) lending. By mid-2024, BankProv had become New Hampshire’s fastest-growing CRE lender, originating $41.3 million in CRE loans in the first half of the year.
Given this strategic pivot, it is unlikely that BankProv will introduce new crypto-related services in 2025. The bank’s recent history suggests a cautious approach toward the volatile cryptocurrency market, favoring more stable and traditional banking sectors.
For individuals and businesses seeking banking services that integrate with cryptocurrency, other institutions have embraced the crypto space. For example, Amina Bank offers in-app crypto trading and staking, while Baakt provides comprehensive crypto services, including staking and lending. These banks have developed infrastructures to support both fiat and digital currencies.
BankProv has proven itself as a versatile financial institution, combining its rich history with modern innovation. With roots dating back to 1828, the bank has maintained a strong foundation in traditional banking while embracing opportunities in sectors like cryptocurrency. This dual focus has positioned BankProv as a notable player in bridging conventional finance and the rapidly evolving crypto industry.
Despite its forward-thinking approach, BankProv has faced challenges, particularly in its crypto sector. Entering the market during a volatile period, the bank experienced setbacks, including significant losses tied to crypto mining loans. These challenges prompted a reevaluation of its strategy, leading to a pivot back toward traditional banking services. After exiting the mining industry, the bank focused on commercial real estate lending. This move shows how brutal the crypto market can be, even for a giant like BankProv.
One of BankProv’s standout qualities is its commitment to regulatory compliance and customer security. Membership in both the FDIC and the Depositors Insurance Fund (DIF) ensures that depositors’ funds are protected beyond standard limits. Additionally, the bank’s adherence to stringent AML and KYC policies highlights its dedication to maintaining trustworthy and secure banking.
BankProv’s journey demonstrates how hard merging traditional banking with crypto is. While its venture into cryptocurrency showcased its willingness to expand, they weren’t prepared for the volatility that came. Still, BankProv’s ability to balance traditional strengths with a willingness to take risks shows how big this bank really is.
Ultimately, BankProv’s focus on stability through traditional services and its openness to emerging opportunities, leaves room for change in the future. Who knows? Perhaps BankProv will re-enter the crypto industry in the future, this time with greater preparation.
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