United States Banks now authorized to offer cryptocurrency custody services
Last Updated on 26 July 2022 by CryptoTips.eu
In the United States, national banks and federal savings banks can now offer custodial services for cryptocurrencies to their customers after receiving approval from regulators in the country.
A big step forward for the cryptocurrency industry
In a public letter dated July 22, the Office of the Comptroller of the Currency (OCC), a state body responsible for regulating and overseeing domestic banks, now allows domestic banks to provide custodial services for cryptocurrencies.
This decision follows a request made last month by the OCC to the public on the digital activities of these institutions, particularly in the field of crypto-assets and blockchain.
OCC notes in its letter:
The OCC recognizes that as financial markets become increasingly technology-oriented, there is likely to be a greater need for banks and other service providers to take advantage of new technologies and innovative ways to deliver financial services. traditional services on behalf of clients.
As part of the approval given to the banks, the OCC maintained that they must separate clients traditional assets from their cryptocurrency funds. The regulator also required banks wishing to provide such services to adhere to the highest security standards.
Thus, financial institutions are authorized to store copies of their clients private keys or to hold the crypto-assets themselves in cold wallets.
Towards an increase in customer services
The OCC is currently headed by Brian Brooks, a former Coinbase exchange executive who joined the regulator earlier this year. It is therefore very likely that he was behind this initiative.
Commenting on the significance of the OCC decision, Brooks added:
From safes to virtual vaults, we need to ensure that banks can meet the financial services needs of their customers today. The advisory clarifies that banks can continue to meet the needs of their customers to protect their most valuable assets, which for tens of millions of Americans today includes cryptocurrency.
In the past, some state-owned banks already offered custodial services for cryptocurrency, but regulations regarding this activity were still in the dark.
With this approval from the OCC, the possibilities for secure storage of cryptocurrencies are set to multiply.
Banks in US have increased adoption of crypto services
The gap between banks and platforms providing cryptocurrency-related services is growing thinner. Last May, the US bank JPMorgan also provided support to Coinbase and Gemini, two local exchanges.
With this openness to individuals, cryptocurrencies and especially Bitcoin (BTC), are gradually gaining recognition from American financial institutions .
