San Francisco-based crypto payments platform Metal Pay has applied for a national bank charter with the U.S. national bank regulator, which would enable the company to offer seamless cryptocurrency-related services.
Metal Pay Eyes Full National Bank License
In a tweet thread published on Thursday (Feb. 4, 2021), Metal Pay’s First Blockchain Bank and Trust (FBB&T) revealed that it intends to become a full national crypto bank following its application with the Office of the Comptroller for the Currency (OCC).
We’re thrilled to announce that we have applied for a full national bank charter from the OCC, a monumental step for the entire cryptocurrency industry.
This marks a turning point for how Americans will view cryptocurrency. We’ll explain why in this thread.
— Metal Pay (@metalpaysme) February 4, 2021
Meanwhile, Metal Pay stated that it was not the company’s original plan to open a bank soon. The decision to apply for a bank charter stemmed from the treatment it received from its banking partner.
Most traditional financial institutions believe in the over flogged narrative that cryptocurrency is used mainly for illicit activities such as money laundering. This has some banks to stop offering banking services, some abruptly, to crypto-related businesses.
Metal Pay stated that it suffered the same fate with its bank, and the only way out was to “become the bank.” The company also said that its aim of banking the unbanked was not supported by traditional financial institutions, adding that “crypto is the future of finance, and we know that DeFi deserves a seat at the table.”
However, what sets Metal Pay’s OCC application apart from others is that the company is looking to obtain a full banking license.
Part of the tweet reads:
“We’re now joining the level of established, legacy financial institutions across the US.
This is different from other crypto companies: while some companies are seeking a limited crypto charter, we’re the first crypto company to seek a national full-fledged banking charter.”
Meanwhile, if the company’s OCC application scales through, Metal Pay’s FBB&T would offer fiduciary services for crypto assets. Also, cash deposits would be insured by the Federal Deposit Insurance Corporation (FDIC), among other services. The license would further enable Metal Pay to function in all the 50 states in the U.S.
As reported by CryptoPotato back in January, Anchorage became the first crypto firm to receive a conditional banking charter from the OCC. Other firms like BitPay earlier applied to the OCC for a BitPay National Trust in December 2020.
The OCC, back in January, green-lighted banks to use stablecoins and public blockchains for settlements.