The crypto exchange and lending firm Abra announced the launching of the first US regulated crypto bank before the second quarter of 2023.
Note that all the user deposits in Abra Bank will be converted into stablecoins that will yield interest just like the traditional banks. The bank will let customers transfer funds into over 100 cryptocurrencies.
Many are calling the decision a bullish indicator that will bring a lot of hope amidst the recent crypto collapse.
The race to create the first US regulated interest-yielding crypto account for providing customers crypto exposures with legal safeguard has been a yearlong one.
Even though Abra Bank’s services that include asset custody, lending and staking are already offered by several other crypto companies, Abra Bank’s efforts to make it regulated makes it different.
Barhydt said, “As a regulated licensed bank, it’s no longer my opinion on transparency and public disclosures. The banking laws take over and require disclosures on assets, liabilities and risk management processes.”