Market News

U.S. Crypto Landscape Transforms as Nubank Gains Ground for Digital Asset Custody

Latin America's largest digital bank, Nubank, has made significant strides toward offering crypto custody services in the United States.

The São Paulo-based institution recently received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC), allowing it to branch out in the U.S. market.

Nubank plans to operate under a comprehensive federal framework, enabling the launch of deposit accounts, credit cards, lending, and digital asset custody once fully approved.

To establish a presence, the bank is working on hubs in major areas including Miami, the San Francisco Bay Area, Northern Virginia, and the North Carolina Research Triangle.

This development coincides with a shift in U.S. regulatory stance toward crypto banking, as the OCC has recognized the importance of broader access for digital asset firms.

As Nubank navigates this process, it must meet specific conditions set by the OCC and secure additional approvals from the Federal Deposit Insurance Corporation and the Federal Reserve.

The company intends to capitalize its institution fully within 12 months, with plans to open its bank within an 18-month timeframe, as required by U.S. regulations.

This proactive approach exemplifies how traditional financial institutions are beginning to embrace the burgeoning cryptocurrency landscape.

The implications of Nubank's approval could pave the way for other foreign institutions looking to enter the U.S. crypto market.

As the sector evolves, the interplay between regulatory frameworks and crypto services will be crucial for shaping the future of digital asset custody in the United States.