The Texas Department of Banking has announced a new update that would further push the adoption of cryptocurrency across the state. In the update, the department mentioned that state charter banks would henceforth help their clients store their cryptocurrency.
With this already looking like a big win for crypto enthusiasts and traders across the state, the department’s stance on crypto has remained unshaken despite the update. In its statement, the department mentioned that traders in digital assets had been offered protective services for their digital assets by the charter banks over a long time.
The department further mentioned that storing digital assets would be slightly different from how the banks keep physical cash. This new development would allow the banks to take over their client’s private keys or store their client’s digital assets in a wallet that they are in control of.
The department even went further to point out that banks are allowed to use external service providers with expertise in storing cryptocurrency.
The statement says that should any user request their assets; they should be provided to them immediately. State charters have a slight difference from their federal counterparts as they are allowed to pick who they offer their services to. However, Texas charters have provided services on par with national banks since 1999.
This means that the state charter in the state is allowed to provide the services that a national entity would provide, making the state an ideal place for investment. Texas also has the most concentration of banks across the United States, only coming second behind California in the list. Besides Texas, Wyoming is also in the race to attract crypto-friendly investment. Following the state’s deposition license, Kraken was awarded the license, and not long after, Avanti got its license as well.
Andrew is a writer that does most of his work on cryptocurrency-related topics. While he’s primarily interested in Bitcoin, he also follows major altcoins and the innovative ideas that new cryptocurrency and blockchain projects are bringing to the table.