Challenge
A traditional commercial bank was looking to reposition itself as a primary banking provider for cryptocurrency exchanges and institutions. The transition demanded innovative solutions to address unique operational complexities, including 24/7 liquidity needs, stringent regulatory compliance, and effective risk management amidst volatile market conditions. The bank faced additional challenges associated with maintaining liquidity, regulatory compliance, and managing systemic risk exposure in a highly volatile crypto environment.
Global Advisory Approach
AML RightSource’s dedicated approach integrated continuous regulatory compliance oversight, liquidity management frameworks, and sophisticated risk assessment capabilities. An expert team of specialists ensured real-time responsiveness, assisting the bank in navigating both operational complexity and rapidly evolving regulatory landscapes inherent to crypto financial services.
Value Delivered
AML RightSource enabled the bank’s successful transition into a critical provider of cryptocurrency banking services, supporting substantial market influence and operational agility.
Facilitated industry-leading real-time settlement capabilities tailored specifically for crypto institutional clients.
Established rigorous compliance and risk management frameworks, reinforcing the bank’s operational integrity.
Delivered innovative crypto-backed lending products, addressing institutional demand for flexible liquidity solutions.
Lessons Learned
Systemic Risk Awareness: Exposure to highly volatile crypto entities can significantly impact overall stability, highlighting the need for rigorous systemic risk assessment.
Liquidity Management: Robust liquidity frameworks are essential to withstand sudden mass withdrawal scenarios common in crypto markets.
Balancing Innovation and Regulation: Banks must strategically navigate regulatory ambiguity, aligning innovative services with compliance requirements to ensure sustainable operations.
