Abra, the cryptocurrency trading platform, said it was “in the process of” establishing a United States-based state-chartered bank allowing clients to deposit digital assets.
It has been reported that Abra said the bank, named Abra Bank, would be regulated to operate within the US and give customers the ability to use digital assets in seemingly the same way as fiat at traditional banks. The company also planned to launch Abra International, a digital asset-focused business based outside the United States.
“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.”
However, the two ventures were expected to launch in 2023 and 2022. Abra announced both institutions would work with officials to ensure regulatory and legal compliance, providing “on-ramps, off-ramps, and transactional services” for cryptocurrencies.
Bill Barhydt, the Founder and CEO of Abra, added said that the US-based bank planned to include services for nonfungible tokens and custody, launching no later than the first quarter of 2023.
Thus, in September 2021, Abra raised $55 million in a funding round led by Amex Ventures and others to grow its product offerings in wealth management. The company reported it had more than $1.5 billion in assets under management, as of September 12.