Abra, a full-service crypto platform for trading, yield, and borrowing, is planning to launch its own bank focused on digital assets.
Abra Bank will be a U.S. state-charted institution, and would be the first regulated bank for crypto in the country, according to the firm.
The formation of Abra Bank will enable U.S. citizens to deposit and bank with digital assets in a manner similar to traditional banking. This will be the first on and off-ramps for crypto available to U.S. customers with this type of infrastructure, the company said. Abra plans to start an international unit as well.
The move is an effort to position Abra as the “default Web3 wallet and crypto bank.”
“Abra believes that the best way to become the default Web3 wallet and crypto bank for everyone is by embracing a global regulatory framework that provides for transparency, oversight, security, and agency,” the company said in a statement.
Abra said it will work with US and state banking regulators to ensure compliance with local laws and regulations and make public disclosures on its balance sheet and risk management processes.
In the announcement, Abra also highlighted its belief that a user’s assets will remain their assets, promoting an “ethos” of “not your keys not your crypto.” The company said that users will truly own their assets, but with the added security and protection a traditional bank would provide.
The launch of Abra Bank will also transition Abra Earn – its yield-earning service – to Abra Boost, which will only accept institutional and accredited investors.
Abra Bank is planned to launch in 2023, while Abra Institutional is scheduled by the end of 2022. Abra currently has over 2 million customers, and $1.5 billion assets under management (AUM).
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