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IPFS News Link • Bitcoin

Texas greenlights state-chartered banks to custody crypto

• The Block Crypto

The notice is a simple affirmation that standard risk-based assessments by the banks themselves are adequate to provide cryptocurrency custody.

The Department of Banking wrote: 

"What virtual currency custody services a bank chooses to offer will depend 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 then held by the bank on behalf of the customer."