While the state of Wyoming promotes the emergence of new crypto banks through the SPDI license, the US Treasury also appears to be working in the same direction.
Banks seem to be forced to move closer to large crypto companies in order to be able to successfully transform.
The OCC lays down its arms at the feet of blockchain and cryptocurrencies
On July 22, 2020, theOffice of the Comptroller of the Currency (OCC), a division of the U.S. Treasury Department, issues a document stating that traditional banks were permitted to provide cryptocurrency deposit and custody services.
TheOCC admits in the document the need for financial institutions to take advantage of blockchain technology and offer related services to their customers.
These services must meet the highest security standards and comply with the principle of asset separation, traditional funds must be kept independent of cryptocurrencies.
The appointment of Brian brooks as leader of theOCC This explains in large part the latter’s favorable position to a rapprochement between the banking and crypto industries. Brooks is the former chief legal office of Coinbase ; he joined theOCC at the beginning of this year 2020.
A forced marriage with cryptocurrencies for banks
In an episode of the podcast ” Unchained “From Laura Shin, Brooks indicated that negotiations were conducted between several banks and big names in the crypto industry, such as Coinbase or Anchorage.
Discussions would focus on the possibility for these firms to act as a third party for banks whose clients wish to invest in Bitcoin.
Brooks believes that the complexities of crypto-asset deposit and custody functions will drive banks to partner with or acquire custodians.
It also indicates that the banks’ decision to offer this type of service could encourage the adoption of the Bitcoin by individual investors, which would lead to a significant increase in demand.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Will current exchanges lose in the face of this merger with the banking industry? Will banks eventually replace crypto-exchanges? On the one hand, the OCC and states like Wyoming are promoting the emergence of a hybrid model combining the best of both sectors; On the other hand, the United States and its G7 partners are fighting Bitcoin (BTC) and global stablecoin projects like Libra (≋). It is not the term stablecoin that is ambiguous, but rather the position of financial institutions which contrasts with that of their government.
Litecoin, welcome in the Silver Age