California-based Metal Pay has become the latest cryptocurrency company to apply for a national banking charter in the United States, according to a Coindesk report.
The startup has already filed its application with the Office of the Comptroller of the Currency (OCC) on Wednesday and is seeking the license for First Blockchain Bank and Trust, N.A.
Rising Demand for Crypto Banking
Metal Pay is seeking the federal baing license when several other established cryptocurrency companies have applied for the same. Paxos and Bitpay were the two most prominent crypto companies that have recently applied for the banking charter.
Unlike other cryptocurrency companies, Metal Pay is seeking a full banking license, meaning it will be allowed to receive deposits in both fiat and digital currencies. Though the company is yet to file applications with the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve Bank of San Francisco, it will approach them soon.
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Metal Pay CEO, Marshall Hayner, explained that the status of a full bank means the cash deposits will be insured by the FDIC. Additionally, he highlighted that, if approved, Metal Pay will be the first fully licensed crypto bank in the United States.
Its OCC application has entered into a 30-day consultation period, and Hayner is expecting to obtain a green light within the next four months.
The crypto banking demand has skyrocketed in recent years with the increasing institutional demand for crypto. Last month the US OCC approved the first crypto bank, Anchorage Digital Bank, which was earlier offering crypto custodian services.
Furthermore, the US state of Wyoming is trying to attract crypto investments and has become a state with some clear laws around digital currencies. Crypto exchange, Kraken earlier received permission from the state to launch a crypto bank under an SPDI charter.