By
Chimamanda U. Martha
January 23rd, 2024
Abra is also planning to introduce Abra Boost, a product that will let qualified investors deposit and earn interest on digital assets.
Digital currency services and infrastructure provider Abra has confirmed it is in the process of launching a digital bank, the first fully regulated financial institution in the United States crypto ecosystem. As reported by Coindesk, the confirmation for this new outfit launch was given by Abra’s Chief Executive Officer, Bill Barhydt at the SALT New York conference.
“Abra Bank will be the first fully regulated depository institution for cryptocurrency in the United States,” said Barhydt. “There are several trusts operating today in the US, but no operational bank.”
The United States crypto ecosystem is considered one of the most robust in the world. The industry has a number of thriving businesses, and Abra’s place in it cannot be shoved aside. With the Abra Bank that is on the horizon, the company will permit users to deposit crypto and earn interest on their savings like a traditional bank.
Besides this, lending services will be activated and users will also be able to gain access to on and off-ramp transactions. Besides its plans to launch Abra Bank, the Mountain View, California-based company also has plans to float a number of customized products to complement the banking services it is pushing for.
One of these products is Abra International. Abra International will serve as the international equivalent of Abra Bank. With this offshoot, the company will be able to extend its banking services to its clients that are not resident in the United States, carving out a new niche as a global digital bank in the crypto ecosystem.
“The biggest banks in the world in 20 years are going to be crypto-centric banks,” said Barhydt.
Abra is also planning to introduce Abra Boost, a product that will let qualified investors deposit and earn interest on digital assets. Abra Boost is branded as an enhanced version of Abra Earn, with its proposed launch in October. According to the company, the current customers in the Earn program will be transferred to the Boost product when it is finally launched.
Abra Bank: Capitalizing on Growing Interest in Digital Currencies
The digital currency ecosystem has seen a very modest evolution in the past few years. This evolution is being fueled by the growing interest in digital currencies and their associated innovations. Abra understands this and is taking advantage of the potential in the industry to float a digital bank that will be fully regulated.
While there are competing banks, including Silvergate Bank and SEBA Bank that offer a similar product as Abra intends, the market is large and there is a potential that the startup will be able to establish its own client base as one of the pioneers in the space.
Abra Bank is slated to be launched sometime in 2023 while Abra International is scheduled for launch by the end of this year.