The first federal cryptocurrency bank in the U.S.

The Office of the Comptroller of the Currency (OCC) within the US Treasury has approved cryptocurrency custodian Anchorage's application for a nationwide 'digital asset bank' license.

This was made possible after the regulator allowed banks to hold the security of stablcoins and keys to cryptocurrency wallets on behalf of customers.

In early 2021, the OCC enabled financial institutions to use public blockchains and stablcoins for settlement. The steps taken made it possible for financial institutions to store, manage and trade digital assets.

In addition to Anchorage, BitPay and Paxos have submitted similar applications for a nationwide trust bank licence.

Last year, the Wyoming State Banking Board granted bitcoin exchange Kraken and cryptocurrency startup Avanti special purpose depository institution (SPDI) status with traditional financial institution functions.

According to the head of Anchorage's legal department, it didn't take long to get the licence, as the custodian is already operating as a regulated trust company in South Dakota. It has an operating history and established policies and procedures under its belt.