In April 2021, US Bank announced expanded custody, investment, and fund administration offerings tailored to cryptocurrencies, underscoring its commitment to driving fintech innovation across retail and institutional clients. Compared to more restrictive banks stated in our guide on How to Buy Crypto with GO2Bank and How to Buy Crypto with Virgin Money, this guide examines US Bank’s crypto-friendly policies, outlines the steps to buy crypto via US Bank using the recommended Kraken exchange platform, highlights key features that make Kraken the best option and analyzes associated fees.
US Bank’s Cryptocurrency Progress
In April 2021, US Bank detailed three new crypto-focused initiatives:
- A cryptocurrency custody solution through Global Fund Services, with a sub-custodian partnership in the final stages
- An investment in blockchain financial technology developer Securrency
- Selection to administer NYDIG’s bitcoin ETF fund, expanding the existing NYDIG relationship
This demonstrates US Bank’s proactive approach to enabling digital asset investing for customers ranging from retail users to institutional allocators.
Can You Buy Crypto with US Bank?
Yes, US Bank allows retail banking customers to purchase cryptocurrencies by wiring funds to regulated crypto exchanges and platforms adhering to FinCEN guidelines. This facilitates secure market access while ensuring full compliance.
Why Choose Kraken
We suggest using Kraken – a US-based exchange aligned with FinCEN regulations and custodial compliance standards, ensuring bank transfers remain compliant. Kraken’s combination of effective security, transparent regulatory compliance, competitive pricing, and a wide range of digital assets makes it an ideal platform for US Bank customers seeking to invest and trade cryptocurrencies.
Key Features
- Strict regulatory compliance with FinCEN and US state money transmitter licenses
- Low cryptocurrency trading fees starting at 0.16% per trade
- Free USD bank wire deposits from US Bank accounts
- Extensive selection of over 100 cryptocurrency assets and altcoins
- Access to crypto staking and governance rewards programs
- Robust platform security protections including encrypted customer data, multi-signature wallets, DDoS countermeasures, and financial audits
- High trade volumes and liquidity for major crypto markets like BTC and ETH
- Established reputation as one of the most trusted US-based cryptocurrency exchanges
- Excellent customer support with live chat, email, and an extensive help center
Fees & Cost
While US Bank does not charge additional fees for sending wires, receiving exchanges assess trading, deposit, and withdrawal fees generally ranging from 0.1% – 1% per transaction. While, Kraken offers competitive rates (0.16% per trade) and free USD bank deposits, making it a cost-effective platform. Always compare exchange fee structures.
Step-by-Step Guide to Buy Crypto with US Bank
Step 1: Open an Account at Kraken
Go to Kraken.com and click ‘Sign Up’ in the upper right corner. Fill out the sign-up form with your email, username, password and other requested personal details.
Step 2: Complete Identity Verification
Kraken requires your SSN, phone number, proof of residence, ID photo, and other information to fully verify your identity based on FinCEN regulations. Navigate to your Kraken account settings and click ‘Get Verified’ to walk through the detailed KYC steps. Expect the approval process to take 1-3 days in most cases.
Step 3: Initiate USD Bank Transfer
In your Kraken account, go to ‘Funding’ and select ‘Deposit’. Choose the USD option, with US domestic wire transfer as the method. Enter your US Bank account details like routing number, account number, etc. and input the fiat deposit amount in USD. Review and submit the wire transfer.
Step 4: Verify Bank Deposit in Kraken Account
The USD funds from your US Bank wire transfer can take 1-5 business days to clear in your Kraken fiat wallet per banking procedures.
Step 5: Execute Cryptocurrency Trade
With USD funds cleared in Kraken, go to ‘Trade’ and access the cryptocurrency markets. Use the sidebar to search for the coin you want (e.g. BTC, ETH). Input investment amount, review the fees, and complete your crypto purchase with the funds linked from your US Bank account.
US Bank’s Cryptocurrency Status
US Bank does not currently provide direct cryptocurrency trading or purchases through its banking services. However, it allows customers to transfer USD to approved cryptocurrency exchanges and platforms that adhere to FinCEN regulations.
US Bank has announced partnerships and services focused on cryptocurrency custody, investment, and fund administration solutions for institutional clients. But retail banking customers can still use wire transfers to access crypto markets.
Does US Bank Work With Crypto?
Yes, US Bank allows its retail and institutional customers to engage with regulated cryptocurrency market activities per FinCEN guidelines. This includes wiring funds from bank accounts to approved crypto exchanges and platforms. US Bank is continuing to explore further relationships in the cryptocurrency space.
Conclusion
As crypto adoption accelerates, US Bank supports customers through custody, asset management, and fund administration solutions tailored for digital assets. By wiring USD to regulated platforms, account holders can securely access cryptocurrency markets in a compliant manner with reasonable fees. This showcases US Bank’s innovative strategy to bridge traditional finance with emerging digital innovations.
FAQs
Is buying cryptocurrency allowed by US Bank?
Yes, US Bank permits its customers to transfer funds to regulated cryptocurrency exchanges and platforms in alignment with FinCEN guidelines. However, US Bank retail banking accounts do not allow direct crypto trading.
What are the fees for buying crypto with US Bank?
US Bank does not charge additional fees for wire transfers to crypto exchanges and platforms. However, the receiving exchanges charge trading fees, deposit fees, withdrawal fees, and blockchain network fees that customers should factor in.
How long do transfers from US Bank to crypto exchanges take?
Bank wire transfers can take 1-5 business days to settle in exchange accounts. Factors like weekends, holidays, and banking batch processing cycles can extend the wait.
