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Banks In The US Can Now Offer Cryptocurrency Custody Services

The Office of the Comptroller of the Currency (OCC) is letting all nationally chartered banks in the U.S. provide custody services for cryptocurrencies.

 

November 2018, Brad Garlinghouse made a prediction that in 2019 we would see banks holding cryptocurrency.  Today we get the news from the OCC that all nationally charted banks in the United States will be able to provide crypto custody services. (Video Time 27:30)

Here is press release from the OCC: Federally Chartered Banks and Thrifts May Provide Custody Services For Crypto Assets

The letter, which appears to be addressed to an unidentified bank or similar entity, notes that banks “may offer more secure storage services compared to existing options,” and that both consumers and investment advisors may wish to use regulated custodians to ensure they don’t lose their private keys, and therefore, access to their funds.

“Providing custody for cryptocurrencies would differ in several respects from other custody activities,” the letter said.

It pointed to the need for digital wallets, adding that because they exist on a blockchain, there is no physical possession for cryptos.

“The OCC recognizes that, as the financial markets become increasingly technological, there will likely be increasing need for banks and other service providers to leverage new technology and innovative ways to provide traditional services on behalf of customers,” the letter said.

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