Payment infrastructure company Modern Treasury has applied to establish a national trust bank in the United States to provide digital asset custody and related fiat currency services.
According to the announcement on Monday, the company has submitted an application to the Federal Reserve Board of Governors (OCC) to establish Modern Treasury National Trust Bank. This institution will operate as a federally regulated, limited-purpose national trust bank.
If approved, this bank will allow customers of Modern Treasury to manage and transfer stablecoins and fiat currencies through integrated services, but it will not issue stablecoins nor provide loans.
Modern Treasury, Co-Founder and CEO, and Matt Marcus stated: "We believe that stablecoins are the cornerstone of the future economic infrastructure." He added that the company has fully integrated stablecoins into its payment platform.
Modern Treasury indicates that the proposed bank will operate separately from its existing payment business. This payment business has processed over $600 billion in payments for hundreds of institutions.
This application comes against the broader backdrop of encryption and payment companies vying to obtain licenses from national trust banks. Bastion and Ripple have received conditional approvals, while Circle and BitGo have received final approvals. The parent companies of Kraken, Payward, Zerohash, and Block have also submitted their applications.
