Institutions wavering about crypto contribution may no longer fear legal uncertainty, given late crypto custody administrative clarity.
Late administrative transparency gave by U.S. banking controller, the Office of the Comptroller of the Currency, or OCC, may give intrigued institutions the certainty to enter the crypto business.
“For those of us who have been building up this ecosystem for years, it’s hugely validating of those efforts,” Diogo Monica, president of crypto custody service Anchorage.
“But the real significance here is for the kinds of institutional players who may have been sitting on the sidelines in the absence of clear regulatory guidance. The OCC coming out and saying that more traditional financial institutions can custody crypto effectively erases that concern.”
The OCC’s move is a triumph for the crypto business
On July 22, the OCC declared digital asset custody by governmentally sanctioned U.S. banks as allowable action. The move gave transparency without changing any current rules, Morgan Creek Digital prime supporter Anthony Pompliano said in an ongoing YouTube video.
“Yesterday’s OCC letter is a huge win for crypto,” Monica said. “Not only does it bring much needed regulatory clarity to the digital asset space in the United States, it also signals to skeptics and the wider market that this asset class is here to stay.”
More banks may enter the business
Holding digital asset for clients as of now requires explicit specific technical tools and prowess – something banks may not house at present. Blockchain action and connection, for example, marking, likewise brings further entanglements and prerequisites.
“Particularly when those actions are yield-generating, it will be imperative for fiduciary banks to support them through partnerships or sub-custodian relationships with a financial services platform like Anchorage,”
A best in coming crypto custody outfit, Anchorage accumulated $40 million from various organizations, including Visa, reported in mid-2019. The startup has since posted various new turns of developments.