The Texas department of banking has taken a significant step in interconnecting banking institutions and crypto services.
Proof of this is the official announcement from the Texas department of banking that state-chartered banks may from now provide customers with virtual currency custody services.
State banks thus have to meet only simple conditions, namely the introduction of appropriate protocols for effective risk management and compliance with applicable legislation.
While custody and safekeeping of virtual currencies will necessarily differ from that associated with more traditional assets, the Texas Department of Banking believes that the authority to provide these services with respect to virtual currencies already exists pursuant to Texas Finance Code § 32.001.
The Texas department of banking also points out that each bank can decide what virtual currency custody services it will offer. This will depend mainly on what expertise the bank has or according to the business model and willingness to take risks.
The bank can therefore decide whether the customer will have direct control over his virtual currency or whether the bank will manage customer cryptocurrencies together with private keys.
The Ministry also recommends that banks, due to the technical complexity of providing services, may establish cooperation with companies that can help them implement this business model.