Mentioned:
CRCL -11.34% PLTR -4.34%
Crypto companies in America have a new ambition: becoming a federally approved bank.
What’s happening:
- Multiple digital asset companies have recently applied for banking charters in the United States of America for the first time ever
Why it matters:
- A National Bank Trust Charter would allow crypto companies to operate under one simple regulatory framework and eliminate the need for multiple state money transmitter licenses, as well as providing direct access to the payment rails of the Federal Reserve including ACH
Who is making moves:
- Circle (NYSE: CRCL) has officially applied for a National Bank Trust Charter following their billion dollar IPO onto the New York Stock Exchange
- Ripple has also applied for a National Bank Trust Charter, which comes shortly after they made waves with their $1.25B USD acquisition of prime brokerage company Hidden Road
Going deeper:
- Digital asset companies in America have been benefitting from a flurry of new regulatory changes out of Washington, D.C. lately, including the United States Senate officially passing the GENIUS Act to allow stablecoin issuers to operate with regulatory clarity
The intrigue:
- Anduril founder Palmer Luckey has also just recently launched a new digital bank known as Erebor which is applying for federal banking licenses in the United States and has landed early Palantir (NASDAQ: PLTR) investors Peter Thiel and Joe Lonsdale as backers
