Bank of America is about to launch crypto custody services and strategically invest in crypto company Securrency

According to  4  Yue  27  days an official blog post , Bank of America ( US Bank ) will be working with a secondary custodian unnamed, to provide a new encryption currency hosting products.

Christine Waldron  , chief global strategy officer of Bank of America Global Fund Services ,  told  The Block  , “We have made a choice and are currently advancing operational integration, risk and compliance processes.” However, when will these services go live? There is no set timetable yet.

In terms of asset management scale, Bank of America is one of the largest banks in the country. The company’s blockchain and encryption business can be traced back to  2015  . These services have expanded in recent months, thanks in large part to the new policy of the Office of the Comptroller of the Currency (  OCC ).

In mid- 2020  , the Office of the Comptroller of the Currency under the leadership of the former Acting Administrator  Brian Brooks  authorized the National Bank located in the United States to custody crypto assets . Subsequently, the Office of the Comptroller of the Currency began to issue national trust licenses to cryptocurrency companies . There are currently  three crypto companies: Protego , Anchorage  and  Paxos.  The company obtained the license.

The Office of the Comptroller of the Currency has successively introduced a series of policies favorable to the crypto industry. 2020  Nian  9  Yue  22  news, according to the new guidelines of the Comptroller of the Currency, the Federal chartered banks and federal savings associations can be a stablecoin reserves held by the publisher. Brian Brooks said  in a statement that the guidelines provide banks in the federal banking system with greater regulatory certainty, enabling them to provide services to customers in a safe and reliable manner.

This year  1  month, Comptroller of the Currency also said in a letter of explanation, said the Commonwealth Bank and Federal savings associations can use the common block chain and a stablecoin for settlement. The letter pointed out that banks and savings associations can now run crypto nodes and use related stablecoins for “permitted payment activities.” This means that banks can use public blockchains to verify, store, record, and settle payment transactions, as long as they comply with existing laws. OCC  further explained that banks can use stablecoins to facilitate customers’ payment transactions on the independent node verification network, including the issuance of stablecoins and the exchange of stablecoins for legal tender.

However, the leadership of the Office of the Comptroller of the Currency has changed and is currently facing political pressure (especially from the Democratic Party of Congress), which requires the cancellation  of the “legacy policy” of Brooks  and its predecessor  Joseph Otting  .

At the beginning of December  last year  , Maxine Waters,  Chairman of the US House of Representatives Financial Services Committee  , stated in a letter to the new president that he recommended that President-elect Biden revoke or supervise all cryptocurrency-related guidance issued by the Office of the Comptroller of the Currency, that is, allowing the National Bank to be stable The currency issuer holds reserves and provides users with cryptocurrency custody services. Each of these suggestions will  wipe out Brian Brooks  ‘ work. In the section on financial stability, Waters  wrote that the Financial Stability Regulatory Commission should publish their analysis of the development and existing regulatory framework surrounding Crypto assets and distributed ledger technology.

In the same month, the US State Banking Supervisory Association ( CSBS ) announced that it had filed a lawsuit in the District of Columbia District Court against the US Office of the Comptroller of the Currency to create new state bank licenses for non-bank companies. CSBS  President and CEO  John W. Ryan  said: “If OCC  is allowed to  create special purpose non-banking licenses, it will redefine the entire banking system, bring new systemic risks, and provide any federal agency that can exceed its legal limits. Set a dangerous precedent. We believe that the court will pay as much attention as we do and rule that the  OCC  illegally attempts to expand its authority.”

Regarding this concern about encryption services, Waldron said: “We are moving forward in accordance with the latest guidelines. This is the most important.”

While announcing the upcoming launch of custodial services, Bank of America also revealed that it has recently conducted the latest round of strategic financing for crypto infrastructure company  Securrency  . Bank of America also stated that it has been selected to manage  NYDIG  ‘s Bitcoin  ETF (if approved by regulatory agencies), based on the bank ‘s long-standing private fund service relationship with  NYDIG  .

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