Abra to Launch First State-Regulated Digital Assets Bank
- Expected to launch in Q1 2023, Abra Bank will allow U.S. citizens to deposit and bank digital assets in a similar way to how traditional banks handle fiat.
- It also plans to launch an international unit with similar services to Abra Bank, and a new staking and yield offering, both scheduled for October this year.
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Crypto trading platform Abra intends to establish the first state-chartered bank in the United States focused on digital assets, the company said in a blog post on 12 September.
According to the announcement, the company is currently “in the process of” setting up Abra Bank, which will allow U.S. citizens to deposit and bank digital assets in the same way traditional banks handle fiat. The new service — which will offer valuable access to fiat on- and off-ramps — is expected to be fully operational by the end of the first quarter of 2023, making Abra the first regulated bank for cryptocurrency in the U.S.. Abra’s founder and CEO, Bill Barhydt, said on Twitter:
The crypto platform also plans to launch Abra International sometime this October, which will offer similar services to Abra Bank but to customers outside the U.S.. In order to become the “default Web3 wallet and crypto bank for everyone”, both institutions will work with government officials to ensure regulatory and legal compliance.
The last product the company announced on Monday was Abra Boost — which will replace the existing Abra Earn service — its new staking and yield offering. Scheduled to launch on 3 October, Abra Boost will be available to all individual and institutional accredited investors in the U.S., and to all investors outside the U.S..
Founded in 2014, Abra claims to have processed more than $7 billion in transactions to date. Available in over 150 countries, the company has grown its userbase to 2 million customers, and currently has around $1.5 billion in assets under management.
- Coinbase has informed its customers that it will no longer provide support for Signature Bank’s Signet real-time payments network.
- The crypto exchange is now looking for an alternative payments network provider, while waiting for more clarity on the outcome of Signet.
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- NYDFS took possession of Signature in order to protect the economy and strengthen the confidence in the banking system, and assured customers that all deposits will be returned.
- The price of USDC also started to recover after its issuer, Circle, revealed that all stablecoin reserves held at Silicon Valley Bank (SVB) were safe, and that the company had new banking partners.
- Both crypto exchange Coinbase and stablecoin issuer Paxos have stated that they will no longer accept or initiate U.S. dollar payments through Silvergate Bank.
- The two noted that cash transactions for institutional clients will now be carried out through their other banking partners, and that the move had no impact on pound and euro payments.