The 8 Best Crypto-Friendly Banks (Expert Reviewed)
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The 8 Best Crypto-Friendly Banks (Expert Reviewed)
Written by:
Dhiraj Nallapaneni
Reviewed by:
David Kemmerer
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Our content is designed to educate the 500,000+ crypto investors who use the CoinLedger platform. Though our articles are for informational purposes only, they are written in accordance with the latest guidelines from tax agencies around the world and reviewed by certified tax professionals before publication. Learn More
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Looking for a crypto-friendly bank? In this guide, we’ll walk through the best options for individuals and businesses based on factors like fees, security, and interest rewards!
Quick Look: The 8 Best Crypto-Friendly Banks
Bank/Platform
Summary
Ally Bank
A traditional bank offering high interest rates, Coinbase integration, and crypto-related funds like Bitcoin ETFs.
Juno
A fintech platform with 4.66% interest rewards, support for crypto purchases, and the option to receive your paycheck in crypto.
Monzo
A UK-based digital bank that integrates with crypto exchanges to track your portfolio (no direct crypto trading).
Revolut
A global fintech app that supports over 200 tokens for trading, with features like free overseas transfers and interest rewards.
Wirex
A crypto exchange with fiat support, up to 8% cashback on debit card transactions and support for 150+ assets.
Coinbase
A cryptocurrency exchange offering banking features like paycheck deposits, a debit card, and support for 260+ cryptocurrencies.
Mercury
A platform for Web3 businesses, providing enhanced FDIC protection and free wire transfers.
Cash App
A full-service financial platform allowing users to buy Bitcoin, receive direct deposits, and earn up to 4.5% APY on savings.
Ally Bank is a traditional bank that offers high interest rates and transparent fees. While Ally Bank does not offer support for crypto transactions, it does have an integration with Coinbase and allows users to invest in crypto-related funds like Bitcoin ETFs.
Pros & Cons
FDIC insured!
Coinbase integration
APYs of 4% on fiat savings at the time of writing!
A wide range of investment options — including crypto funds like GBTC (Grayscale Bitcoin Trust)
Does not support direct cryptocurrency transactions within its platform.
Does not support cash deposits (can use direct deposits, online deposits, and remote check deposits)
Juno is a financial technology platform that supports cash and cryptocurrency! The platform is known for offering generous benefits to users — like 4.66% interest rewards.
It’s important to note that Juno is a financial technology company, not a bank. Juno partners with Evolve Bank and Trust to offer banking services.
Pros & Cons
Buy cryptocurrencies on more than 20 chains!
4.66% interest rewards
No holding period for cryptocurrency
Add cash with free ACH and wire transfers
Receive part (or all) of your paycheck in crypto!
Fees on debit/credit card deposits
At the time of writing, crypto buys and sells on Juno are under maintenance.
Juno’s partner, Evolve Bank & Trust, has been accused of wrongdoing (through the legal process is still ongoing)
Monzo is a mobile digital bank based in the United Kingdom. While Monzo doesn’t support crypto trading, the bank does allow you to integrate your exchange accounts to get a view of your crypto portfolio.
Pros & Cons
Track all of your bank accounts, credit cards, and crypto holdings through the Monzo app
Funds protected through Financial Services Compensation Scheme for UK customers, FDIC protection for USA customers
Earn interest above 3.5%
Only available for UK & USA residents
Direct crypto trading is not offered within the Monzo platform.
Revolut is a fintech company that offers more than 200 tokens for trading. While Revolut is not a bank, it does offer a debit card, interest rewards, and free overseas transfers! Revolut has a free version, but it offers bonus features for those who pay a monthly subscription fee. Revolut Premium is $9.99 a month!
Pros & Cons
Revolut’s app allows you to buy and sell cryptocurrency, stocks, and commodities!
While Revolut is based in the UK, it is available around the globe — including countries like the US, UK, Australia!
Interest rates as high as 4.75%
Free overseas trading!
While Revolut does store customer funds in FDIC-protected banks, the company’s website says that FDIC insurance doesn’t protect customer funds in the case of bankruptcy.
2% fees on out-of-network ATM withdrawal, various fees for adding funds to credit card
Wirex is a cryptocurrency exchange that supports cryptocurrencies and fiat currencies. Wirex’s generous debit card rewards make it a great option for anyone looking for a banking alternative!
Pros & Cons
Up to 8% cashback rewards and card transactions, 0% global exchange fees
Earn up to 16% APR on various cryptocurrencies!
Support for 150+ digital and traditional assets
Because Wirex is not a bank, it does not offer many of the services that traditional banks offer!
Wirex has faced criticism for slow customer support.
Prepaid card funds are held at Sutton Bank — an FDIC-insured institution. However, Wirex does not have FDIC insurance for other types of funds.
While Coinbase is a cryptocurrency exchange, the platform has rolled out features to partially replace traditional banking services. Today, Coinbase allows users to directly deposit their paychecks and spend using the Coinbase debit card!
Pros & Cons
One of the world’s largest and most trusted cryptocurrency exchanges!
Earn up to 12% rewards on Coinbase Earn!
Rotating cashback rewards on the Coinbase Card!
Support for 260+ cryptocurrencies!
Because Coinbase is not a bank, your funds are not FDIC-insured.
Does not offer many of the features that traditional banks offer — such as loans.
In the past, Coinbase has faced criticism due to slow customer service.
Mercury provides banking services for thousands of Web3 companies — including Phantom and Rarible. Mercury offers easy onboarding to crypto companies and the ability to make transfers through ACH, check, and wire transactions.
It’s important to note that Mercury is technically not a bank. Mercury is a financial technology platform that works with regulated partner banks.
Pros & Cons
Mercury’s bank partnerships allow the platform to offer 20x the normal amount of FDIC protection!
Free domestic and international wire transfers in USD!
No monthly fees or overdraft fees!
Prepaid debit cards and cash back bonuses available!
Mercury is designed for businesses — not individuals!
While Cash App started off as a payments application, it’s now considered a full-service financial platform. Cash App allows users to receive direct deposits and ACH transfers, buy goods and services with a debit card, and buy Bitcoin with just a click!
Pros & Cons
Cash App allows users to easily buy and sell BTC!
Funds in Cash App are FDIC insured up to $250,000!
Up to 4.5% APY on Cash App savings (if you are a Cash App holder who direct deposits $300 or more to the app every month)
Only supports BTC, not other cryptocurrencies.
Relatively high fees on crypto transactions — as high as 3% for small transactions!
How to pick a crypto-friendly bank
Consider the following factors when choosing a crypto-friendly bank.
Support for both fiat and cryptocurrencies: Managing all funds in one place can simplify your finances.
Crypto cards and spending options: A bank that offers crypto debit cards can make spending cryptocurrency easier.
Integration with crypto exchanges and wallets: Connect with your wallets and exchanges so you can easily transfer your crypto and make transactions.
Crypto-powered banking services: Look for additional features like crypto-backed loans or earning rewards on crypto holdings.
Fees and charges: Be mindful of transaction fees and any monthly account charges.
Pros and cons of crypto-friendly banks
Let’s walk through some of the pros and cons of crypto-friendly banks.
Pros
Simplifies entering the crypto market
Easier conversion of crypto to fiat currency
Supports innovations in the blockchain ecosystem
Convenient mobile banking options
Cons
Exposure to the volatility of crypto markets
Potentially higher fees for crypto services
May lack some advanced features found in dedicated crypto wallets and DeFi platforms
Can I start a cryptocurrency bank account with a debit card?
Yes, many crypto-friendly banks and financial platforms offer debit cards that can be used for both fiat and cryptocurrency transactions, enhancing the ease of accessing and spending your digital assets.
In addition, cryptocurrency exchanges like Coinbase and Gemini offer crypto debit cards for users that come with spending rewards.
Are major banks crypto friendly?
If you’re using a major bank like Wells Fargo, Bank of America, or Chase, you may be wondering whether your bank is crypto-friendly.
It’s important to remember that these major banks do not allow their customers to buy cryptocurrency using their bank-issued credit cards. However, they typically support transferring money into or out of cryptocurrency exchanges.
Remember, many crypto investors use these banks without issues.
However, according to Jordan Bass — CoinLedger’s Director of Tax Strategy and owner of the crypto accounting firm Taxing Cryptocurrency — you should be cautious if you’re dealing with large sums of money.
‘If you’re transferring thousands of dollars to an exchange like Coinbase, it’s unlikely to cause issues,’ said Bass. ‘However, if you’re transferring millions of dollars of profits from cryptocurrency trading to your bank account, it’s advisable that you build a relationship with a personal banker that understands your situation to prevent potential issues.’
Can I use DeFi as a substitute for banks?
Many cryptocurrency investors who are frustrated with the traditional financial system have advocated for turning to decentralized finance instead of using banks.
At this time, DeFi does have advantages over traditional banks. While bank transactions may take several days to process, DeFi transactions are typically finalized in an instant.
However, it’s important to note that traditional banks come with advantages — such as access to ATMs, FDIC insurance up to $250,000, and tight regulations to protect customer funds, among other things.
Join 500,000 people tracking their gains and losses with CoinLedger.
Written by:
Dhiraj Nallapaneni
Crypto Tax Writer
Dhiraj Nallapaneni is a Crypto Tax Writer at CoinLedger. As an Economics degree holder from the University of California Santa Barbara, he’s well versed in topics like cryptocurrency markets and taxation.
This guide breaks down everything you need to know about cryptocurrency taxes, from the high level tax implications to the actual crypto tax forms you need to fill out.
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