Vast Bank, a community bank based in Oklahoma, announced earlier this week that it has decided to exit the cryptocurrency market. The bank made waves in 2021 when it launched a mobile banking app that enabled customers to buy, sell, and hold crypto alongside traditional checking and savings accounts. Through partnerships with SAP and oinbase">Coinbase, Vast claimed the app made it the first FDIC-insured bank in the country to directly integrate crypto services.
However, in October 2023, Vast Bank received a consent order from the Office of the Comptroller of the Currency (OCC). The regulator cited Vast for “unsafe and unsound practices” in areas like risk management, internal controls, and oversight of new products. As part of the consent order, Vast was required to submit a revised three-year strategic plan with a focus on coming into compliance.
Faced with this scrutiny from regulators, Vast Bank made the strategic decision to shut down its crypto services and liquidate all digital asset accounts by January 31, 2024. The bank’s CEO Tom Biolchini emphasized the importance of separating Vast’s crypto offerings from its core community banking business which serves retail and commercial customers.
By closing its pioneering cryptocurrency venture, Vast Bank aims to refocus its attention and resources on strengthening regulatory compliance and delivering on its longstanding mission to provide essential banking services to its traditional customer base. The bank views this pivot as necessary to maintain the trust it has built over decades in its community.
