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.
Image: Anchorage
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