Cryptocurrency startup Anchorage Hold LLC has obtained conditional approval from the U.S. Office of the Comptroller of the Currency to become a federally chartered bank.
Now officially known as the Anchorage Digital Bank National Association, Anchorage is the first cryptocurrency company to receive a Federal Banking Charter, a notable milestone in the history of cryptocurrency startups. What the charter means is that Anchorage is now the first official digital asset bank in the United States with the same standards and approval as traditional banks.
Although Anchorage does not seek to establish branches in local neighborhoods, the charter allows the company to offer services such as trading and loans. “More immediately, it brings within reach of any traditional financial institution that wishes to give its clients access to digital assets of sub-custody services, the first of its kind,” Anchorage said in an article published today. .
“In granting this charter, the OCC has applied the same rigorous review and standards applied to all charter applications,” the OCC said in a statement. “By integrating this candidate into the federal banking system, the bank and industry will benefit from OCC’s extensive supervisory experience and expertise.”
Founded in 2017, Anchorage offers what it calls a crypto-native digital asset custody service for institutional investors. A custodian holds clients’ property or money on their behalf, taking responsibility for the safety of the financial products held. The company’s offering is designed to help institutions better protect their investments while getting the most out of their assets.
Anchorage was co-founded by Diogo Mónica, who previously worked for Square Inc., and Nathan McCauley, former director of security at Docker Inc. It launched out of stealth mode with funding of $ 17 million in January 2019.
In an interview with Forbes, McCauley said the charter would lead hundreds of banks to partner with Anchorage to take advantage of the cryptocurrency boom. “This will allow all kinds of people to come to the table who, so far, have been reluctant to come in,” McCauley said. “This marks a big change in the availability of crypto assets.”
The Anchorage Charter comes as cryptocurrency prices, led by bitcoin, continue to rollercoaster, albeit at high prices that would not have been believed a month ago. Bitcoin was trading at $ 37,489.81 at 9:55 p.m. EST, after dropping to $ 30,525.39 on January 11 after peaking at $ 41,528.79 on January 8.
Since you are here …
Show your support for our mission with our one-click subscription to our YouTube channel (below). The more subscribers we have, the more YouTube will bring you relevant content for businesses and emerging technologies. Thank you!
Support our mission: >>>>>> REGISTER NOW >>>>>> on our YouTube channel.
… We would also like to tell you about our mission and how you can help us fulfill it. SiliconANGLE Media Inc.’s business model is based on the intrinsic value of content, not advertising. Unlike many online publications, we don’t have a payment wall or banner ads because we want to keep our journalism open, without influence or the need to drive traffic.The journalism, reporting and commentary on SiliconANGLE – plus live, unscripted video from our Silicon Valley studio and globe-trotting video teams at The cube – requires a lot of work, time and money. Maintaining high quality requires the support of sponsors who are aligned with our vision of ad-free journalistic content.
If you enjoy reporting, video interviews and other ad-free content here, please take a moment to view a sample of the video content supported by our sponsors, tweet your support, and keep coming back to Silicon ANGLE.