Medici Bank is about to become crypto-friendly, according to CEO Ed Boyle. The Puerto Rico-based bank, initially founded by Prince Lorenzo de Medici, has begun testing a possible digital onboarding process which includes web portals and its application programming interface with five companies from around the globe, in order to see if the bank’s systems can scale to accommodate trading volumes. Among their first clients, there will be two or three companies from the crypto world and at least one of them will be an exchange, according to Boyle:
“Crypto companies are high-throughput types of clients...If we can handle that, we can handle anything.”
The full launch is planned for the beginning of 2020 and the project is aiming to have $1 billion in combined deposits and assets under management within 3 years. In Boyle’s vision, up to a third or half of its total business could consist of crypto clients.
This move puts Medici bank in front of most of its peers in terms of becoming crypto-friendly.
Boyle believes that blockchain infrastructure offers unprecedented advantages that can help the bank to manage risks:
“It’s a heck of a lot easier to analyze a blockchain than it is to analyze a paycheck. In banking crypto-related companies, we don’t have to make assumptions, we just figure out what the wallet address is and analyze the history of that wallet address.”
From a long term perspective, Medici bank aims to decentralize banking and build its own blockchain network where small digital banks will be able to work with larger institutions with much greater efficiency:
“It only makes sense to deploy a blockchain where you have counterparties. I’m a blockchain maximalist. Blockchain is not something that’s between Wells Fargo New York and Wells Fargo London.”
Customers, in his opinion, will greatly benefit from an ability to change accounts between banks in “one click”:
“Banks like to put up walled gardens and make it difficult for you to take your money elsewhere, we want to make it very easy for you to send your money elsewhere, whether it’s from one place to another or from one bank to another.”