Getting exciting in Tulsa!
Getting exciting in Tulsa!
I get it. Traditional banking is boring. There is no moving fast and breaking things in traditional banking. But wouldn’t it be great if it was more fun. You know with conferences, and calling your self- a technologist or a disruptor, saying things like “the people are craving new forms of moving money and ACH ain’t it.” You know. FUN!
So what happens when a bank tries to make banking fun or at least more interesting by getting into, say, cryptocurrency? Well, let’s talk about Vast Bank NA.
Vast Bank, a small community bank, decided to spice things up by diving into crypto.
Four years into his tenure, CEO Brad Scrivner stood in front of a Sapphire conference crowd and declared that Vast Bank was moving into cryptocurrency. He said people were “crypto-curious” but wanted safety, and what better place than a national bank? With the right technology and partnerships, of course. Enter SAP and Coinbase, the tech giants behind their ambitious plan.
So, Vast Bank rolled out a mobile app for crypto trading. Shortly after Scrivner’s grand announcement, a mysterious $34.44 million asset for Computer Software appeared on the bank’s December 2021 balance sheet, ballooning to $55.42 million by September 2023. It was great. It brought in deposits, if not income, so that was fine, I guess
In November, the OCC announced a cease-and-desist order citing everything from capital ratios to risk management. In the 2023 filing, a $55 million noninterest expense flowed through the income statement, causing a $66.3 million loss. This hit their capital hard, leading to an $8 million injection that barely made a dent. Scrivner was out.
Fast forward to January 31st, and the bank announced it pulled the plug on its crypto app, liquidated all digital assets, and closed customer accounts. The dream was over.
Vast Bank was created in 1982 when Robert Biolchini bought and combined two small banks. He served as the Chairman of the Board until his passing in November 2017, when his son replaced him. Until this month, the bank was wholly owned by the Biolchini family. However, in June 2024, Greg Kidd, a VC investor and politician, recapitalized the bank with $53 million to become the largest shareholder.
If you like rollercoasters, this must have been fun.