Crypto exchange and lending firm Abra announced plans to launch Abra Bank, the first U.S. state-chartered, regulated crypto bank.
If successful, Abra Bank will allow users to convert all deposits into stablecoins that will yield interest just like traditional banks. The bank will also offer convenient tools for exchanging to and from fiat currencies.
The race to create the first U.S. regulated, interest-yielding crypto banking institution has been years-in-progress, with many already offering much of what Abra Bank is seeking to do without the legal safeguards that a charter offers.
“Abra Bank will be the first fully regulated depository institution for cryptocurrency in the United States,” Abra CEO Bill Barhydt said during the SALT New York conference. “There are several trusts operating today in the U.S., but no operational bank.”
“As a regulated licensed bank, it’s no longer my opinion on transparency and public disclosures,” Barhydt added. “The banking laws take over and require disclosures on assets, liabilities and risk management processes.”
According to the firm, they expect Abra Bank to launch before second quarter 2023.
Abra also announced plans to launch Abra International, a fully regulated digital asset business that will deliver similar banking services for its customers outside the U.S. According to the firm, Abra International is expected to launch by the end of 2022.
Abra also will launch “Abra Boost” in October, a product that allows qualified investors to deposit and earn interest on digital assets. The company said it would be transitioning customers of its existing lending product, Abra Earn, to the new Abra Boost.
“The biggest banks in the world in 20 years are going to be crypto-centric banks,” Barhydt said.