Posted 3 months ago | by @devadmin
The U.S. Office of the Comptroller of the Currency (OCC) has given approval to crypto custodian Anchorage to receive a national trust charter making it the first digital asset bank in the country.
The OCC said in a statement on Jan. 13th, 2021, that Anchorage had received the national trust banking charter, which allows the company to create Anchorage Digital Bank, following a review of its business.
“In granting this charter, the OCC applied the same rigorous review and standards applied to all charter applications,” the bank regulator said in a statement. “By bringing this applicant into the federal banking system, the bank and industry will benefit from the OCC’s extensive supervisory experience and expertise.”
“At the same time, the Anchorage approval demonstrates that the national bank charters were provided under the National Bank Act are broad and flexible enough to accommodate evolving approaches to financial services in the 21st century,” it added.
Anchorage was founded in 2017 by Nathan McCauley and Diogo Mónica, providing its customers mostly institutional investors crypto custody and trading services. The firm reportedly handles around $100 billion in transactions per year. Last November Anchorage announced they were seeking a national trust charter two months later they were historically accepted.
Anchorage has become the first cryptocurrency entity to receive a national trust federal charter. The news further solidifies digital currency into the future financial system being developed.
Anchorage’s charter will have the following requirements.
“As an enforceable condition of approval, the company entered into an operating agreement which sets forth, among other things, capital and liquidity requirements and the OCC’s risk management expectations.”
In a blog post on Wednesday, McCauley and Mónica expressed the positive news.
“Having a national bank charter places Anchorage Digital Bank firmly on the same regulatory footing as other national banks in the country. Since our founding, we’ve been credited numerous times with blurring the lines between crypto and traditional finance. Today, we’re happy to see those lines begin to be erased.”
Acting OCC chief, Brian Brooks, stated earlier on Wednesday that banks and financial services more specifically would shift to being blockchain-based and that fiat would ultimately eventually become obsolete.
“I think what’s necessary is the creation of crypto banks that are able to hold stablecoins that reflect the value of a fiat currency,” he said, “but that doesn’t change the native asset, and you need to have real cryptocurrencies over here where they interact directly with each other, with no need to ever off-ramp, fiat will ultimately be a legacy thing of the past.”
Bitcoin is currently trading at [FIAT: $38,379.64] UP +0.6% in the last 24 hours according to Coingecko at the time of this report.