Anchorage Becomes the First Digital Bank to Function As a Traditional Bank
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 OCC’s 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 company’s 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 – specifically how brokers can demonstrate that no other entity can access them their own and have a private key.
In an interview with Forbes, McCauley said the charter would force hundreds of banks to partner with Anchorage to join the cryptocurrency boom. McCauley said that Anchorage allows all kinds of people to come to the table, even those who were reluctant to come. It represents a massive change in the availability of crypto assets.
Anchorage is co-founded by Diogo Mónica, and Nathan McCauley, former director of security at Docker Inc. It launched from stealth mode in January 2019 with a funding of $ 17 million.
The Anchorage Charter comes as the price for the Bitcoin-led cryptocurrency continues to move up, albeit at a cost that it would never have achieved a month ago. Bitcoin was trading at $ 37,489.81 at 9:55 p.m. EST after falling to $ 30,525.39 on January 11, after hitting a high of $ 41,528.79 on January 8.