Questions Remain Around The OCC Decision To Allow Banks To Custody Crypto
The recent Comptroller of the Currency (OCC) ruling that national banks and savings associations can provide cryptocurrency custody services to clients is one of the biggest milestones in the short but spectacular lifetime of digital currencies. Now that U.S. banks have the green light to begin custodying crypto, everybody knows that the rules have changed — we just don’t yet know exactly how. As the dust begins to settle, there are a number of important questions we need to ask. What is the thinking behind the OCC’s letter? Why now? And how long will new Bitcoin enthusiasts be happy to....
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U.S. banks have been taking the plunge into crypto. The rising popularity of the crypto market has seen more demand from banks’ customers for more exposure and although banks are prohibited from directly maintaining self-custody of cryptocurrencies, they are turning to third-party solutions to gain exposure. The latest in the long line of banks rolling […]
Experts say building custody solutions is tricky, but will become crucially important as crypto grows more valuable. As multiple banks prepare crypto custody services, holders now have to flip an old Bitcoin saying on its head: are the banks prepared to be their own (and others') bank? Last week BNY Mellon, the oldest bank in the United States, announced they would be providing custody solutions, ceding to pressure from institutional investors. Likewise, documents from December indicate that Deutsche Bank is also planning a custody solution, along with trading and token issuance services.....
Over half of the 100 largest banks by assets under management are reportedly investors in major crypto and blockchain technology-based companies and projects. Global banking giants are reportedly increasing their involvement in the emerging crypto and blockchain firms by way of early- and late-stage funding for projects and businesses in the industry.According to research by Blockdata, a blockchain market intelligence outfit, 55 out of the top 100 banks by assets under management (AUM) have some form of exposure to the novel technology. This involvement reportedly cuts across direct and....
The Texas Department of Banking has announced that state-chartered banks can provide cryptocurrency custody services. “The Texas Department of Banking believes that the authority to provide these services with respect to virtual currencies already exists,” the banking authority said. Texas State-Chartered Banks Officially Authorized to Offer Crypto Custody Services The Texas Department of Banking issued a notice to the banking industry Thursday, stating: Texas state-chartered banks may provide customers with virtual currency custody services, so long as the bank has adequate....
Crypto adoption in traditional legacy systems is moving fast, but a lack of technological infrastructure limits compliance and safe storage. The adoption of digital assets in traditional legacy systems is moving fast. In the middle of the year, the digital asset custody industry saw welcome developments when the Office of the Comptroller of the Currency officially announced that all nationally chartered banks in the United States can provide custody services for cryptocurrencies.The move, while positive for the ecosystem, is yet to be accompanied by a rigorous assessment of its....