The Office of the Comptroller of the Currency (OCC) has released authorization for all banks nationwide in the United States to provide cryptocurrency custody services.
US banks adjust to the market
In a public letter of July 22, senior vice president and senior adviser Jonathan Gould said that any national bank will be able to hold the unique cryptographic keys of a cryptocurrency wallet, paving the way for national banks to hold digital assets for their customers, who in addition to buy shares now they can also invest in crypto!
The letter marks an important development for the cryptocurrency industry. Previously, custody was entrusted to specialized companies, such as Coinbase, who generally needed a license in order to offer the service to large investors.
Now, the big regulated finance companies that already provide similar custody services for stock certificates and more could get into the fray. The letter notes that banks "can offer more secure storage services than existing options" and that both consumers and investment advisors may wish to use regulated depositories to ensure that they do not lose their private keys and, therefore, the access to their funds.
The OCC stressed the need to create digital wallets, adding that since they exist on a blockchain, there is no physical possession for crypto products. "The OCC recognizes that as financial markets become increasingly technological, there will likely be an increasing need for banks and other service providers to take advantage of new technologies and innovative ways of providing traditional services to customers," he said. the letter.
Banks can provide both trust and non-trust custody services, the letter says. It also specifies that banks entering the space "should develop and implement those activities consistent with sound risk management practices and align them with the bank's overall business plans and strategies".
The deal covers any crypto product
The OCC is currently headed by Brian Brooks, a former Coinbase executive who joined the office earlier this year. He has assumed the role of interim Controller since early summer and has already proposed a series of reforms that would benefit crypto companies, including a national payment card that would allow crypto startups to circumvent the state's approach. to which they belong in terms of acquiring money and broadcasting licenses if they provide payment services.
Wednesday's letter "also reaffirms the OCC's position that national banks can provide banking services for any legal asset they choose, including crypto products, as long as they manage risks effectively and comply with applicable law."
JPMorgan Chase is one of these national banks that provides banking services to companies in the crypto sector, as happened in the case of Gemini and Coinbase earlier this year. Like their overseas counterparts, however, banks in the United States have generally been little careful in serving the sector, perceiving exchanges and other startups as a risk to the bank's reputation and compliance.
