After crypto payments, more precisely in Bitcoin (BTC), Bitpay decided to try its luck with a new project still in the financial sector. Like Kraken and Avanti, the payment provider would like to launch its own national trust bank. He therefore filed with the Office of the Comptroller of the Currency (OCC) a request for authorization to make his project a reality.
The state of Georgia as the launch point for the BitPay National Trust Bank
On December 7, the OCC received a request from BitPay to launch its national trust bank. Recalling the prerogatives of such an institution, Eden doniger – General Counsel and Head of Compliance at BitPay – confirmed the news to fellow members of Cointelegraph. “We confirm that BitPay has filed an application with the United States Office of the Comptroller of the Currency (OCC) to create a national BitPay trust bank. It is a national limited-purpose bank that engages in trust activities »He declared.
The lawyer justified sending a request to the OCC by asserting that the latter was the forefront of government regulation of the cryptocurrency industry. Named BitPay National Trust Bank, the bank should first locate in Georgia in accordance with the petition that was filed. “Our operations as a national fiduciary bank will be subject to strict security and soundness requirements that will give our clients the assurance that our services remain best in class and allow us to be subject to a uniform regulatory framework. This is the first step in a long series of steps to launch a chartered institution »Concluded Mr. Doniger.
A pro-crypto at the head of the OCC, a boon for Bitppay?
Currently led by Brian brooks who was the director of the exchange Coinbase, the OCC has supported the custody of digital assets by banks. The fact that the body is headed by a former player in the crypto space played an important role in easing tensions between the two parties. If the presence of Mr. Brooks at the head of the OCC should be reassuring for BitPay, things could change quickly.
Indeed, the appointment of the person concerned comes against the backdrop of the departure of the Trump administration after he has yet to be heard by the Senate. With his post not yet confirmed, there is a good chance he will be replaced by future President Joe Biden. While waiting to get there, the bitcoin payment provider has 120 days to obtain a favorable opinion from the OCC.
Having long drawn the wrath of the banks, crypto space companies like BitPay are now poised to challenge them on their own turf. Last month, the supplier was developing a rapid solution for mass payments for the benefit of companies.