Key dealers
- The Federal Reserve has allowed US banks to offer custody services for bitcoin and other crypto assets.
- The decision reduces regulatory friction and allows banks to compete with existing crypto -carers.
The Federal Reserve has given us Banks Green Light to offer custody services for Bitcoin and other crypto assets.
The shift, described in a joint statement From the Federal Reserve, OCC and FDIC, traditional banks allow digital assets on behalf of customers. Previously, the uncertainty of the legislation prevented banks from entering the crypto care space and cancel the land to specialized companies.
With this change, banks can now expand their services to include crypto storage together with traditional offers. The move comes in the midst of increasing institutional demand for exposure to crypto, especially secure custody solutions.
Banks that offer custody must comply with existing risk management, cyber security and supervisory standards. They are also covered by laws governing AML, KYC and supervisors by third parties.
