It's official, the U.S banks can now custody Crypto in behalf of their customers.
The U.S bank regulator, Office of the Controller of the currency (OCC), have just granted all federal savings and national banks could now custody Crypto for their customers.
The news was released on Wednesday July 22, 2020 and it's a whole big development to the crypto industry, with this grant means all customers that have accounts on U.S Banks may give them authorization to hold their Crypto. The permission by clients also give the banks the responsibility to hold they valuable digital assets, as can be seen on the article portion from the theblock:
"Providing custody services for cryptocurrency falls within these longstanding authorities to engage in safekeeping and custody activities. As discussed below, this is a permissible form of a traditional banking activity that national banks are authorized to perform via electronic means. Providing such services is permissible in both non-fiduciary and fiduciary capacities. A bank that provides custody for cryptocurrency in a non-fiduciary capacity would essentially provide safekeeping for the cryptographic key that allows for control and transfer of the customer's cryptocurrency."
Americans can now have the opportunity to hold digital assets on traditional banks, give them permission to secure their valuable Cryptocurrency, the times are changing with many investments companies betting on decentralized assets. Millions of American have some Crypto on their cryptograpic wallets with many making investments on the ecosystem.
With that grant by U.S Office of controller of the currency, the OCC, the Americans will have liability to buy and custody Crypto on their financial elected institutions, allowing them to check and evaluate their portfolio the same way do with traditional assets. It's a whole new reality to the customers who have Crypto on the portfolio also a big entry of Banks and federal savings association in United States.
There have a big discussion about creating a digital dollar by the Federal Reserve and in coming times more can come from that, in the meantime China and some European countries have broken that "Tabu" and are building their CBDC based on Blockchain technology, with China already in tests in several Chinese cities.
The now released regulation show up the intentions of financial American institutions in securing their place as Crypto custodians, in time this could also granted permission to buy and sell digital assets direct or in behalf of customers, but that is another history, that could come to reality soon or later.
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Nice article