Victor Ugochukwu · Dec 14, 2020 . 5min read
BitPay files to become a National U.S. Bank
Bitcoin payments giant BitPay aims to form a national trust bank in U.S., based on its filing with the United States OCC.
By Komal Joshi · Dec 11, 2020 . 5min read
Bitcoin payments service, BitPay files to become a National U.S. bank. BitPay has applied to the Office of the Comptroller of the Currency (OCC). Atlanta Journal-Constitution published a legal notice emphasizing the request. BitPay, founded in 2011, provides a payments app and a prepaid Mastercard product.
The move would witness BitPay filing to become a National U.S. bank. BitPay will thus become BitPay National Trust. The notice mentions a capitalization of about 12 Million issued shares. The organizers behind the decision involve BitPay’s co-founder and CEO Stephen Pair, co-founder Anthony Gallippi, General Counsel & Chief Compliance Officer Eden Doniger, Chief Finance Officer Jagruti Solanki, and Chief Marketing Officer William Zielke.
BitPay’s National Bank location same to its recent headquarters
Moreover, the filing states that the bank’s official location would be Alpharetta, Georgia, same as its prevailing headquarters. The submission describes the most advanced effort by a firm in the cryptocurrency space to develop a banking institution. Crypto exchange Kraken is establishing a bank in the U.S. state of Wyoming. Following its steps, Avanti, an institutionally-focused crypto-friendly bank managed by CEO Caitlin Long, currently obtained its banking charter approval. However, there’s a 30-day comment period for anyone who needs to return to BitPay’s application. However, the listing lapses on Jan. 7, 2021.
Further, BitPay’s bank bid comes after OCC acting comptroller Brian Brooks announced plans to transform how crypto and fintech startups license their operations. Moreover, in September, Brooks emphasized strategies to empower payment firms to work over state lines with an exceptional set of consolidated rules and stated that the OCC is set to commence accepting applications.
Following the imminent transformation of government and considering that Joe Biden as president would re-nominate Brooks, the crypto industry expects to see if the Senate registers his confirmation hearings in the coming weeks. The OCC regularly establishes a timeline of 120 days to acknowledge applications such as BitPay, in which time the office could be working under totally different leadership.
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