(Kitco News) - Abra, a full-service cryptocurrency platform that offers trading, yield opportunities and borrowing services, has announced that it intends to launch Abra Bank as the first fully regulated U.S. bank for cryptocurrencies.
According to the announcement, Abra Bank will allow customers in the U.S. to deposit and bank with digital assets as well as access global fiat on and off ramps. The firm also has plans to launch Abra International, which will offer the same services as Abra Bank for customers who live outside of the U.S.
This move by the firm was done in an effort to "become the default Web3 wallet and crypto bank for everyone," which Abra feels can only be achieved "by embracing a global regulatory framework that provides for transparency, oversight, security, and agency."
The focus on "Agency" – which Abra defined as meaning that "your assets remain your assets" – is especially pertinent right now following the implosion of Celsius and Voyager, whose users are likely to lose some or all of the assets they deposited on these platforms.
Abra says that while it ascribes to the ethos of "not your keys not your crypto," it understands the need that some people and organizations have when it comes to managing their digital assets. For this reason, "Abra will provide the on-ramps, off-ramps, and transactional services to make crypto and Web3 work for everyone."
The company indicated that it intends to work with U.S. and state banking regulators to ensure compliance with local laws and regulations, and will make public disclosures on its balance sheet and risk management processes.
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As part of the launch of Abra Bank, the platform's yield-earning service Abra Earn is going to transition to Abra Boost, which will "enable all qualified investors to deposit and earn interest on their digital assets."
At its launch in the U.S., Abra Boost will only be available to institutional investors or individuals who are accredited investors, and that requirement will be in effect until Abra Bank officially launches in the U.S.
Abra Bank is expected to launch in 2023. All Abra customers in the U.S. will be transitioned to Abra Bank and will be able to use Abra Trade, Abra Boost and Abra Borrow "in accordance with all applicable regulations and Abra's standard terms of service."
Abra International is expected to launch in late 2022. Following its launch, all Abra customers living outside the U.S. will be transitioned to Abra International to access trading, Abra Boost and Abra Borrow.
Abra currently has over 2 million customers and $1.5 billion in assets under management (AUM).
