Crypto.com Files Application for US Bank Charter
Crypto.com filed an utility with the OCC to obtain a National Trust Bank Charter. The change doesn’t plan to operate as a financial institution; slightly, it hopes to significantly increase its custody enterprise and associated choices.
A seal of federal regulatory approval might entice extra institutional purchasers to make use of the agency’s custody options, probably enabling new staking choices. Its CRO token briefly spiked after the information, however a number of lingering questions stay.
Does Crypto.com Want to Be a Bank?
The Web3 and banking sectors have been inching closer together in current months, and many crypto-native corporations are becoming a member of the pattern.
In July, Ripple filed for a bank charter, Coinbase did the same earlier this month, and now, Crypto.com is throwing its hat into the ring:
“Building the Crypto.com product and repair portfolio by regulated and safe choices has been our focus since day one. We are excited to take this subsequent step by submitting for a National Trust Bank Charter and stay up for persevering with to pursue alternatives to offer prospects with the trusted providers they require,” CEO and co-founder Kris Marszalek stated in a press release.
Crypto.com’s assertion about how a banking license might enhance its enterprise was surprisingly obscure. The agency appeared much less excited by really serving as a TradFi-style financial institution than increasing its custody providers.
To be clear, although, the change claimed that this new license received’t intervene with its bizarre operations for crypto purchasers.
By turning into OCC-regulated, the corporate might grow to be a extra engaging custody answer for varied institutional traders, together with digital asset treasury (DAT) corporations and ETFs.
Ideally, it may well leverage its new custody position to supply extra associated providers, like token staking throughout a number of blockchains.
Cautious Community Optimism
Whatever Crypto.com plans to do with this banking license, the group appears intrigued by it. The firm’s CRO token briefly spiked in worth after the announcement, though many of the positive aspects shortly vanished:
The OCC has become much more crypto-friendly below the Trump Administration, granting banks new abilities to custody digital property. If that is something to go by, it appears seemingly that Crypto.com will win its desired banking license.
Still, this spree of recent banking integrations might have some bizarre penalties for the market.
Two months in the past, a number of crypto-aligned billionaires bragged that they could leverage political favors to win a license shortly, and this took place as advertised. Even prominent YouTubers are beginning to create their very own crypto banking platforms.
In different phrases, the OCC’s string of approvals has allowed some really unlikely candidates to enter the sector. Whether or not Crypto.com plans to make use of its license as such, the banking business could also be altering endlessly. Chaotic intervals like that may trigger some bumpiness within the markets.
The publish Crypto.com Files Application for US Bank Charter appeared first on BeInCrypto.
