Abra establishes state-managed digital bank

Cryptocurrency platform Abra is planning to launch its own state-regulated digital bank.

Abra establishes state-managed digital bank

Abra Bank will be a US institution and the first regulated bank for cryptocurrencies in the country, according to the company's latest announcement.

Abra Bank allows US citizens to deposit with digital assets similar to traditional banks. This will be the first time the cryptocurrency is available to US customers based on this infrastructure. Abra also plans to set up an international unit.

The company said in a statement:

“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 U.S. and state banking regulators to ensure compliance with local laws and regulations, and to publicly disclose balance sheets and governance processes. manage your risk.

In the announcement, Abra emphasized its belief that users' assets will remain their own, actually owning the assets, but based on the added security and protection that a bank transmits. supply system.

Abra Bank will also convert Abra Earn – a profitable staking service – to Abra Boost, which will only accept accredited institutional investors. Abra Bank is scheduled to launch in 2023 and Abra Institutional by the end of 2022. Abra currently has over 2 million customers and over $1.5 billion under management (AUM).

Founded in 2014 in California, Abra is a platform for both individual and institutional clients with services such as trading, lending and borrowing of cryptocurrencies. Abra is backed by many famous investment funds, such as Blockchain Capital, CMT Digital Ventures and Kingsway Capital. Last September, the company raised $55 million in a Series C round and was valued at around $500 million at the time. But by July of this year, Abra decided to "gut out" a series of personnel and jobs amid the great pressure of the market.

FoxCryptoNews summary

Sep 13, 2022

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