In a statement made by Acting Comptroller and former Coinbase Executive, Brian Brooks,”The Office of the Comptroller of the Currency” (OOC) has formally confirmed that national banks, and federal savings associations, may now provide cryptocurrency custody services for customers.
Brooks stated that: “we must ensure banks can meet the financial service needs of their customers today.” He further stated: “This opinion clarifies that banks can continue satisfying their customers’ needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency.”
For many years, banks have securely provided custody services in the form of safety deposit boxes, where clients can store valuable items such as documents and jewellery. With financial markets becoming more digitised, the need for banks to develop innovative ways for them to serve customers’ wishes continues to expand. It is heartening to see that banks are recognising the need to provide cryptocurrency custody services.
Many people would prefer to have the peace of mind that their wallet and private key is safely stored.
It is tremendous news for cryptocurrency. As banks are now able to provide cryptocurrency custody services, this may attract more institutional investors into the crypto space. This new adoption will likely encourage more development in regard to the regulation of cryptocurrency. By banks entering the space and expanding the competition, it will likely significantly increase adoption.