Texas United Bank It aims to become a bridge between the cryptocurrency industry and traditional financial institutions after it received approval from Office of the Comptroller of the Currency (OCC) to become a nationally chartered bank, CoinDesk I mentioned Wednesday (May 27).
Before the transfer enabled by this approval, the bank was a state-chartered financial institution, according to the report, which cited an interview with the president and CEO of United Bank of Texas. Scott Beck.
United Texas Bank will also continue offering the digital asset services it has been offering for years while Wall Street “continues to tiptoe,” Beck said in the report.
The OCC approval also marks the 40-year-old Texas bank’s debut on the national stage, according to the report.
Digital asset players who can’t get accounts at other banks can go to United Texas Bank and “basically have full access to the US dollar,” Beck said.
The bank has been providing its services to cryptocurrency companies for about five years and handles $120 billion worth of transactions for them every year, according to the report.
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As a nationally chartered bank, United Texas Bank now has a federal license, full powers of trust, and direct access to… Federal ReserveWire and ACH systems, along with Federal Deposit Insurance Corporation (FDIC). He already had insurance, the report said.
Beck also said in the report that United Texas Bank is launching a real-time payment network called UTB Atomic which provides the 24/7 liquidity infrastructure needed by a 24/7 cryptocurrency market.
UTB Atomic’s instant off-balance sheet clearing between institutional clients is supported by the bank’s AI network called UTB Prism Sentinel, which neutralizes compliance risks by performing continuous monitoring of the blockchain in real-time, according to the report.
United Texas Bank plans to add a full-service digital asset custody and trust management division this summer, Beck said in the report.
The Federal Reserve said on May 15 press release He did not object to the conversion of United Texas Bank from a bank supervised by the Federal Reserve to a bank supervised by the OCC.
When a bank is subject to Federal Reserve supervision and subject to enforcement actions issued by the board, it is required that the board not object when it proposes to become a national bank, according to the statement. The OCC submitted a supervisory plan to the board that will address enforcement action regarding United Bank of Texas, according to the release.
According to a CoinDesk report, the bank operated under a consent order with the Federal Reserve regarding the Bank Secrecy Act and compliance infrastructure.
