First “Regulated” Cryptocurrency Bank in the US

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2022-09-16 08:04:44

Cryptocurrency trading platform Abra is planning to launch its own digital bank regulated by state agencies.

As recently revealed, Abra – financial institution in the United States will become the first crypto bank under state regulation.

The official announcement from the company representative said, Abra Bank allows US citizens to deposit money with digital assets similar to traditional banks. For the first time, cryptocurrency will be available to US customers based on this infrastructure. In the future, Abra may establish an international unit.

In a statement, the company said:

“Abra believes that the best way to become the default Web3 wallet and crypto bank for everyone is to adopt a global regulatory framework that provides transparency, oversight, and security.”

Abra will work with US and state banking regulators to ensure compliance with local laws and regulations, and publicly disclose its balance sheet and risk management processes .

In the announcement, Abra emphasizes the belief that users’ assets will remain theirs, actually owning the assets, but based on the added security and protection that a traditional bank provides.

Whereby, Abra Bank will also convert Abra Earn – profit staking service – sang Abra Boost, the company will only accept accredited institutional investors. Abra Bank is expected to launch in 2023 and Abra Institutional by the end of 2022. Abra now has more than 2 million customers and management more $1.5 billion (AUM).

Founded in 2014 in California, the Abra platform enables both individual and institutional customers to perform services such as trading, lending and borrowing cryptocurrencies. Moreover, behind Abra is the backing of many famous investment funds such as Blockchain Capital, CMT Digital Ventures and Kingsway Capital.

Last September, through the Series C round, the company successfully raised $ 55 million and was valued at about $ 500 million at that time. However, the stagnation of the market until July of this year had a significant impact on Abra, forcing the company to eliminate a series of personnel and jobs.

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