U.S.-based Provident Bank taps Bitfury's blockchain solution for digital asset compliance

In a recent announcement, it was revealed that blockchain startup Bitfury was teaming up with The Provident Bank in order to provide better services based on the decentralized ledger technology.

Under the partnership, the bank will use Bitfury's Crystal Blockchain analytics platform to enhance client onboarding processes and transaction monitoring procedures. The alliance is also aimed at making complying with anti-money laundering rules much easier.

In a blog post detailing the finer points of this new partnership, with Crystal Blockchain CEO Marina Khaustova underscored the importance of blockchain and cryptocurrency. This is particularly true these days with even traditional financial institutions adopting digital assets.

“The cryptocurrency and blockchain industries represent a growing sector that is increasingly important as companies adopt digital assets,” Khaustova said. “We are honored to be partnering with the Provident Bank to extend banking services and compliance platforms to this industry through the use of our leading compliance and AML platform.”

For its part, The Provident Bank noted how it arrived at Crystal Blockchain becoming its partner in this initiative. The bank’s CEO, Dave Mansfield said.

“Security, client data and AML compliance are top priorities for The Provident Bank. Early in the development of our digital asset initiative, we began vetting potential Regtech partners and found the expert-led Crystal Blockchain platform to be the type of essential partner required to be the market leader in crypto deposits.”

This partnership will also help with the matter of fighting money laundering via both fiat and cryptocurrency pathways, AMBCrypto reports. The bank will integrate Crystal's advanced transaction monitoring solution to provide more visibility into the activities on the public blockchain.

Thanks to the anonymity offered by crypto coins, it has become quite easy for criminals to simply convert their dirty money into digital assets and hide them. Through collaborations like this one with Bitfury and The Provident Bank, money laundering becomes much harder.