Anchorage obtains federal license to operate as a crypto bank

The U.S. Office of the Comptroller of the Currency (OCC) has granted conditional approval to crypto custodian Anchorage to launch the nation’s first federally chartered digital asset bank.

In a declaration On January 13, 2021, the OCC said the company received the National Banking Trust Charter, which allows it to establish Anchorage Digital Bank, after a thorough review of its operations.

With the approval, Anchorage will now be required to comply with OCC capital and liquidity requirements and certain risk management procedures. The firm has signed an agreement with the banking regulator to this effect.

“By bringing this candidate into the federal banking system, the bank and industry will benefit from the OCC’s extensive supervisory experience and expertise,” said the regulator, a unit of the US Treasury Department. .

“At the same time, the Anchorage approval demonstrates that the national banking charters provided under the National Bank Act are broad and flexible enough to accommodate changing approaches to financial services in the 21st century.” , he added.

Founded in 2017 by Nathan McCauley and Diogo Mónica, Anchorage provides cryptocurrency custody and trading services to institutional investors. The company is said to handle around $ 100 billion in transactions per year.

Anchorage filed for a national banking charter last year, hoping, among other things, to make it easier for conventional banks to offer crypto services through what it calls under-custody with the company.

In a blog post On Wednesday, McCauley and Monica detailed:

Having a national banking charter puts Anchorage Digital Bank on the same regulatory footing as other national banks in the country. Since our founding, we have been credited many times with blurring the lines between crypto and mainstream finance. Today we are happy to see those lines begin to fade.

Anchorage becomes the first cryptocurrency entity to receive a federal charter. However, last year both Kraken and Avanti were licensed to operate as digital asset banks by the state of Wyoming. The state charter allows the duo to become national, but there are limits.

The Anchorage Banking Charter is hailed as an important development in the growth of the crypto industry in the United States. Under Acting Controller Brian Brooks, the OCC has shown progress in building the nascent sector. Last year, the regulator allowed banks to use stablecoins and public blockchains for settlement. The OCC has also given the green light to US banks to hold stablecoin reserves for issuers.

What do you think of Anchorage’s national banking charter? Let us know in the comments section below.

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