Posted on 07-23-2020.
The Office of the Comptroller of the Currency (OCC), which is an independent bureau within the United States Department of the Treasury, has officially allowed federally chartered banks to store cryptocurrency wallet keys. https://twitter.com/usocc/status/1286009624856940544 The open letter written by the OCC Deputy Head Jonathan Gould suggests that banks are capable of offering safer custody services than existing market players. Banks are now allowed to provide fiduciary and non-fiduciary custody services. Apart from banks, the decision also covers federal thrifts. Notably, the letter also suggests that custodial services may “extend beyond passively holding ‘keys’.” Brian Brooks, former Coinbase executive and current head of the OCC, added that "from safe-deposit boxes to virtual vaults, we must ensure banks can meet the financial services needs of their customers today.” He believes that dozens of millions of Americans see cryptocurrencies as valuable assets. The decision seems to garner high appreciation from the crypto-industry. https://twitter.com/zhusu/status/1286075246785605632 https://twitter.com/barrysilbert/status/1285989941898612739 https://twitter.com/prestonjbyrne/status/1285987556241420288 https://twitter.com/pierre_rochard/status/1286045524030885888 Currently, Coinbase Custody is the biggest institutional crypto custodian in the U.S. It manages $7 billion worth of digital assets. Other major custodians in the U.S. are Fidelity Digital Assets, BitGo, and Bakkt. Follow us on Twitter and Facebook and join our Telegram channel to know what’s up with crypto and why it’s important.