Texas says state-backed banks can offer custody services for bitcoin as long as they have the proper tools to manage risk

SourceBusiness Insider
SectorFinancial Services
CountryMiddle east

The Texas Department of Banking greenlighted state-chartered banks to offer custody for crypto assets in a notice on Thursday. The notice affirms that banks may provide customers with virtual currency custody services as long as the bank has “adequate protocols in place to effectively manage the risks and comply with applicable law.” The US’s national banking regulator made , saying that national banks and federal savings associations can provide crypto custody as an interpretation of existing law. The Texas banking department noted that the custody services a bank chooses to offer will hinge on the bank’s expertise, risk appetite, and business model.

“For instance, the bank may choose to allow the customer to retain direct control over their own virtual currency and merely store copies of the customer’s private keys associated with that virtual currency. Alternatively, the bank may cause the customer to transfer their virtual currency directly to the control of the bank, creating new private keys that are...read more...