Provident Bancorp in Amesbury, Mass., has set an ambitious goal for its dealings in crypto-related businesses.
The $1.6 billion-asset company disclosed in a recent presentation that it plans to bring in more than $1 million in fee income next year from cash vault services for Bitcoin ATMs, also known as BTMs.
A third of the crypto deposits are tied to exchanges, a quarter to institutional investors, and a fifth is related to BTMs, the presentation said.
Crypto-related deposits make up 7% of the company’s deposits, and 85% of the crypto-related deposits are noninterest bearing, Jeffrey Kitsis, an analyst at Piper Sandler, said in a note to clients.
“Based on the rapid growth that Signature Bank and Silvergate Capital have delivered in this space, we wouldn’t be surprised to see digital-asset deposits continue to move higher at a swift pace,” Kitsis added.