Anchorage Becomes the First Digital Bank to Function As a Traditional Bank

Friday 15 January 2021, 3:48 AM AEST - 1 week ago

Cryptocurrency startup Anchorage granted provisional federal charter bank OK

Cryptocurrency startup Anchorage Hold LLC has received conditional approval from the US currency control office to become an official federal government bank.

Qualified Custodian for Institutional Investors

Anchorage, now officially known as the National Association of Anchorage Digital Bank, was the first cryptocurrency company to receive the Bundesbank charter. It is an essential milestone in cryptocurrency history adoption. The accord means that Anchorage is now the first authorized digital asset bank in the US to meet the same standards and approvals as traditional banks.

A national banking charter forms the Anchorage Digital Bank based on the same regulations as other national banks. The fastest way to get monitored services is a first for any traditional financial institution looking to provide its customers with digital assets access.

Although Anchorage does not seek to set up offices in the local environment, the charter allows the company to provide services such as trading and loans.

OCC said that in awarding this charter, OCC applies rigorous review and the same standards applicable to all charter applications. By introducing these candidates into the federal banking system, banks and industry will benefit from the OCCs rich experience and expertise.

Anchorage was founded in 2017 and offered institutional investors a crypto native custody service for digital assets. The custodian holds client property or money on their behalf and is responsible for its financial products security. The companys proposals have a design to help institutions better protect their investments while extracting more of their assets.

Future Partnerships With Anchorage

Crypto firms have long struggled to become qualified trustees in terms of how digital asset service providers can comply with aspects of the Securities Investor Protection Act of 1970 – specifica ...

Read full story on BTCMANAGER

Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.