Bermuda has a long and interesting history with American businessmen and now, that relationship is getting even stronger thanks to a New York Bank. Signature Bank recently announced they will partner with the Government of Bermuda to offer bank accounts for Bermuda based crypto startups. Bitcoin microloans, FinTech companies and more from the island nation can now have access to US banking services. The real question now is how will this affect the market?
BANKS LOVE BERMUDA STARTUPS AND BITCOIN MICRO LOANS?
For years, the going story was that banks hate crypto startups. But now in 2019, we are seeing a different narrative arise. Month by month, more banks are starting to warm up to a more stable crypto market after years of regulation and volatility. Fast forward to today and we have New York banks partnering with Bermuda crypto startups to give them access to US banking services. On the topic, Signature Bank stated that “Bermuda is competitively placed to advance the pace of digitization of global commerce.”
CAN BITCOIN MICRO LOANS AND TRADITIONAL BANKS COEXIST
Signature Bank is surely one of the most crypto friendly organizations we’ve seen in their respective industry, but not all are so willing to take that risk. However, many should consider it. With the rising popularity of bitcoin microloans, banks are at risk of losing more clients each day. These platforms are faster, more convenient and offer better value on loans compared to traditional banks. In fact, many crypto startups offer competitive advantages to traditional financial institutions. Hence, we are seeing banks joining the “revolution” as opposed to fighting it.
BITCOIN MICRO LOANS ARE THE FUTURE OF BANKING
Crypto lending startup YouHodler does not claim to be a replacement to traditional banking. They admit that crypto loans will not compete with banks but instead, work side by side with them to provide a more efficient process to users. This is what banks want to see. Those radical, revolutionary startups calling for the end of Wall Street are hard to trust. Instead, they want to see startups like YouHodler that bring innovative collateral options, high loan to value ratios and profitable benefits to disadvantaged people. Crypto is about bringing the rest of the world up to speed on the global economy. Both sectors of finance can co-exist. All we need is a little compromise.