Important
Summary: First Republic Bank doesn’t offer customers the chance to buy crypto on its own platform. Instead, its customers can connect their personal bank accounts or debit cards to a Financial Crimes Enforcement Network (FinCEN) licensed broker to buy digital assets like Bitcoin (BTC) and Ethereum (ETH).
Therefore, to buy crypto with the First Republic Bank in the United States, investors will need to create an account with a platform such as eToro and then transfer funds from the First Republic to the exchange.
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Can you buy crypto with the First Republic Bank?
You can buy cryptocurrencies using your First Republic Bank account, but you will need to use a third-party FinCEN-regulated crypto exchange or brokerage. As mentioned above, First Republic does not offer a crypto investment platform, but it does allow its customers to transact with such platforms offered by regulated third parties.
How to buy crypto with the First Republic Bank
If you are a First Republic Bank customer and are looking to invest in cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and others, you have a few options. They include using unregulated brokerage and exchange platforms, peer-to-peer marketplaces, and even cryptocurrency-dispensing ATMs.
The best option, taking into consideration several factors, might not be any of these choices but rather using a platform such as eToro. eToro stands out among the competition as it enables its customers to access more than 70 different digital assets, is ideal for beginners, and has a solid reputation wherever it is registered for securities trading, including in the United States.
Additionally, eToro offers one of the most beneficial tools for newbies and intermediate traders called ‘copy trading’, where its users have the option to copy the trades of other traders.
How to buy crypto with First Republic Bank: Step-by-Step
You can get started in minutes with four simple steps:
- Step 1: Create an account on the eToro platform and complete your identity verification (personal or company);
- Step 2: Navigate to eToro’s funding section, where you’ll fill in a transaction form to deposit USD from your First Republic Bank account or card;
- Step 3: Connect your First Republic Bank account to eToro. Alternatively, you can connect your First Republic payment card (debit or credit) from within the funding section. Then initiate the transaction;
- Step 4: Once you have successfully made the deposit, navigate to the crypto marketplace, locate your cryptocurrency of interest, and buy it. The assets will be deposited into your eToro wallet account, from where you can trade or transfer them to a more secure cold wallet.
Disclaimer: Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold is not an affiliate and may be compensated if you access certain products or services offered by the MSB.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
About the First Republic Bank
First Republic Bank (NYSE: FRC) is a San Francisco-based bank that was established in July 1985 by Jim Herbert with an enterprise value of $8.8 million. More than three decades later, the bank has grown to become the 14th largest bank in the United States, with an enterprise value of over $19 billion, known as a lender catering to wealthy tech industry executives.
Starting out with a single office at 201 Pine Street in San Francisco, the bank has also expanded its presence across the US to cover over 80 offices located in seven states, including California, New York, Oregon, Washington, and Wyoming.
The bank mostly caters to an affluent clientele who need the following services:
- Personal banking – where they get access to various accounts such as checking, savings, money market funds, loans, credit cards, individual retirement accounts (IRAs), and Certificates of Deposit (CDs), among others;
- Business banking – most businesses will enjoy similar services offered to individuals as outlined above with an addition of business-oriented products including lines of credit, SME loans, commercial real estate, and access to the foreign exchange market;
- Private wealth management – there are three main services offered in this category by the three different subsidiaries and these are investment management offered by First Republic Investment Management; brokerage services offered by the First Republic Securities Company, LLC; and trust services offered by the First Republic Trust Company.
Note
First Republic Bank failure
As of 31st of December 2022, First Republic Bank was one of the largest banks in the US, holding the 14th position based on the total value of assets. However, on the 1st of May, 2023, First Republic Bank collapsed and was sold to JPMorgan Chase (JPM). First Republic Bank was the second-largest bank to fail and the third mid-sized financial institution to collapse in the US in just a few months in 2023, after Signature Bank and Silicon Valley Bank.
In Q1 2023, more than $100 billion in customer deposits were withdrawn from the First Republic Bank, which made the collapse almost inevitable.
Between the 8th and 20th of March 2023, First Republic stock crashed and was in free fall, dropping from $115 per share and bottoming out at roughly $12 per share. By the end of April 2023, First Republic Bank’s stock price had significantly decreased, with the bank fighting for survival, and acquired by JPMorgan Chase in May 2023.
JPMorgan is set to acquire a loan portfolio worth $130 billion from First Republic Bank. These large-scale bank failures have already cost Federal Deposit Insurance Corporation (FDIC) $13 billion in losses, which is set to move significantly higher by the end of 2023.
So, why did First Republic Bank fail? It attributed rising interest rates and a failure to manage this risk as the primary reasons. Customers are likely to withdraw deposits from regional banks and hold them in large institutions such as JPMorgan Chase, Citi, Bank of America, and Wells Fargo.
First Republic Bank crypto policy
Despite not offering its customers a cryptocurrency investment platform, First Republic Bank takes notice of the potential that the new asset class has been issuing advisories to its clients on how to invest. For instance, in May 2021, the bank prepared an investor white paper titled Bitcoin, Blockchain, and Beyond.
It is in this white paper shared with the public that it does recommend the new asset to its clients. In it, the bank notes that “investors still looking for exposure to Bitcoin could have a small place for it in their portfolios.”
The bank goes on to recommend that “investing in cryptocurrencies can be done through digital exchanges [such as eToro], open-ended funds or private passive funds.” As we’ve outlined in this guide, all investments should be done through licensed and regulated platforms to avoid getting scammed.
First Republic investment managers advise their clients to only consider investing in Bitcoin and its peer assets if they qualify as having high-risk tolerance and to limit their investments to no more than 1% to 3% of their portfolios.
How to buy crypto safely
Before you rush off to buy your favorite cryptocurrency on eToro, it is important to take a step back and consider the risks inherent in buying digital assets. By appreciating these risks, you may be in a better position to protect yourself against some common pitfalls that may lead to considerable losses.
Some risks involved in crypto investment include
- Market risks – the price of cryptocurrencies is extremely volatile, which could represent a good opportunity to make a profit if you are experienced or lucky, or it could be an investment trap. Always approach any investment in a cryptocurrency with caution and knowledge that you could lose your money in an instant if the price of the asset tanks. This happens regularly in the crypto market, and therefore it is something to be very conscious about at all times;
- Fraud, scam, or cybersecurity risks – it is possible to lose your investment through security breaches such as theft, hacking, or similar incidences. A crypto exchange could be hacked either internally or externally (and they often are), leading to the loss of customers’ assets;
- Regulatory risks – cryptocurrencies are a new asset class, and most regulatory agencies across the world are now trying to figure them out to come up with regulatory frameworks, for example, how crypto is taxed. In the meantime, investors are left in a state of uncertainty on how to participate in the blockchain market without breaking the law;
- Self-custody risks – the safest way to store cryptocurrencies is using cold storage methods such as hardware, steel, or paper wallets. With these methods, the crypto wallet owner is responsible for the safety of their private keys. Most people find it cumbersome to self custody their assets and risk losing these keys inadvertently and thereby losing their cryptocurrencies.
How to mitigate against crypto investment risks
To avoid falling into some of the pitfalls mentioned above, observe the following measures regularly;
- Use cold storage – self-custody, as stated before, is the safest way to store your digital assets. Learn to use these offline cold storage options and how to properly back up your private keys;
- Use properly licensed and regulated platforms to invest – not every crypto exchange is regulated to operate in your jurisdiction. Research the ones that are and ensure that they do enjoy a positive reputation before you invest. The last thing you want is to be a victim of a rug pull or a poorly run platform that ends up bankrupt;
- Educate yourself about cryptocurrencies and the blockchain – immerse yourself in the blockchain and crypto space, research, and learn all that you can. It is the best way to stay safe against all risks, including those of a regulatory nature.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs on how to buy crypto with the First Republic Bank
How to buy crypto with First Republic Bank?
You can buy crypto with First Republic by connecting your account to a licensed third-party cryptocurrency investment platform. Alternatively, you can use one of the bank’s payment cards to transfer funds and make your purchase.
Does First Republic Bank allow cryptocurrency?
First Republic does not offer a crypto investment platform, but neither does not restrict its clients from doing business with such platforms. Its clients are free to send money to or withdraw from crypto exchanges to their First Republic accounts.
What crypto exchanges does First Republic Bank allow?
The bank allows its customers to open accounts with trusted, licensed and regulated crypto exchanges in the United States.
What is First Republic Bank’s crypto policy?
The First Republic Bank advises its investment management clients and the public to embrace cryptocurrencies and the blockchain even though they cannot buy these assets off the bank’s platform. Specifically, the bank recommends crypto to those individuals with high-risk tolerance but cautions them not to hold more than 3% of their portfolio in these volatile assets.
Is First Republic Bank crypto-friendly?
Yes, the First Republic Bank supports and encourages clients to invest in cryptocurrency, albeit cautiously. It may not sell or buy crypto to and from them, but it doesn’t restrict transactions to regulated and licensed third-party digital asset platforms.
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