OCC gives green light on cryptocurrency custody services
23 July 2020 Washington DC
Image: HQuality/Shutterstock
The Office of the Comptroller of the Currency (OCC) has declared that national banks and federal savings associations have the authority to provide cryptocurrency custody services to their clients.
Although the OCC has recognised safekeeping services for digital assets since 1998, the letter clarifies the provision of specific cryptocurrency custody services as a modern form of traditional bank activities related to custody services.
In the environment of increasingly digitised financial markets, the OCC acknowledged the need for banks and other service providers to leverage new technology in order to meet clients’ needs.
The formal opinion is consistent with several states that have already authorised state banks and trust companies to provide these functions.
Brian Brooks, acting comptroller of the currency at the OCC, explained: “This opinion clarifies that banks can continue satisfying their customers’ needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency.”
Commenting on the authorisation, Robert Cooper, CEO of Digivault, added: “This announcement signifies a real acceleration in the embrace of the digital asset class and the value of digital currency solutions. Not only does this represent seismic development for crypto holders in the US, but echoes a broader trend regarding the acceptance of digital assets amongst global regulators.”
Cooper continued: “With tokenised securities also emerging across many sectors as a more efficient and liquid means of asset ownership, regulators across the globe are taking proactive steps to building a strong regulatory environment to support their growth.”
Although the OCC has recognised safekeeping services for digital assets since 1998, the letter clarifies the provision of specific cryptocurrency custody services as a modern form of traditional bank activities related to custody services.
In the environment of increasingly digitised financial markets, the OCC acknowledged the need for banks and other service providers to leverage new technology in order to meet clients’ needs.
The formal opinion is consistent with several states that have already authorised state banks and trust companies to provide these functions.
Brian Brooks, acting comptroller of the currency at the OCC, explained: “This opinion clarifies that banks can continue satisfying their customers’ needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency.”
Commenting on the authorisation, Robert Cooper, CEO of Digivault, added: “This announcement signifies a real acceleration in the embrace of the digital asset class and the value of digital currency solutions. Not only does this represent seismic development for crypto holders in the US, but echoes a broader trend regarding the acceptance of digital assets amongst global regulators.”
Cooper continued: “With tokenised securities also emerging across many sectors as a more efficient and liquid means of asset ownership, regulators across the globe are taking proactive steps to building a strong regulatory environment to support their growth.”
NO FEE, NO RISK
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
100% ON RETURNS If you invest in only one asset servicing news source this year, make sure it is your free subscription to Asset Servicing Times
