In a June 10 notice, the Texas Department of Banking gave state-chartered banks the go-ahead to custody crypto assets. The notice is a simple affirmation that standard risk-based assessments by the banks themselves are adequate to provide cryptocurrency custody. The Department of Banking wrote: "What virtual currency custody services a bank chooses to offer will depend on the bank’s expertise, risk appetite, and business model. For instance, the bank may choose to allow the customer to retain direct control over their own virtual currency and merely store copies of the customer’s private keys associated with that ... (full story)

This notice affirms that Texas state-chartered banks may provide customers with virtual currency custody services, so long as the bank has adequate protocols in place to effectively manage the risks and comply with applicable law. Texas state-chartered banks have long provided their customers with safekeeping and custody services for a variety of assets. These services play a crucial role in the business of banking as customers look to banks to offer secure and dependable storage. While custody and safekeeping of virtual currencies will necessarily differ from that associated with more traditional assets, the Texas ... (full story)