US Banks to Commence Cryptocurrency Custody Services

The US Office of the Comptroller of the Currency (OCC) on Wednesday said banks in the country now have the right to provide cryptocurrency custodial services to cryptocurrency businesses.

In a letter issued to banks, the OCC said banks providing cryptocurrency custodial services to investors and businesses would have to take possession of cryptographic access keys to that unit of cryptocurrency.

This, it said was due to the difference in traditional banking methodology and the blockchain technology process.

“From safe-deposit boxes to virtual vaults, we must ensure banks can meet the financial services needs of their customers today,” said Acting Comptroller of the Currency Brian P. Brooks.

“This opinion clarifies that banks can continue satisfying their customers’ needs for safeguarding their most valuable assets, which today for tens of millions of Americans includes cryptocurrency.”

This, move according to cryptocurrency experts, could open mainstream doors to the cryptocurrency world and further bolster the digital market outlook going forward.

One of the key industry players, Gemini, a regulated cryptocurrency exchange and Anchorage, agreed this could be good for the crypto industry.

“Today’s forward thinking announcement by the OCC validates Gemini’s long standing approach to custody. Gemini has built an institutional-grade custody solution to address the unique challenges of storing digital assets, that’s regulated by the NYDFS, and serves many institutional partners. A regulated solution provides the best option for the safety and security of clients’ crypto assets,” said Noah Perlman, Chief Compliance Officer, Gemini.

Bitcoin value rose above $9500 immediately the report was made public on Wednesday.