NORFOLK, Neb.–Telcoin is reporting it received final charter approval from the Nebraska Department of Banking and Finance to launch Telcoin Digital Asset Bank, which it said is the first digital asset depository institution in the United States.
“The charter positions Telcoin to become the first true blockchain bank, directly connecting U.S. bank accounts to regulated ‘digital cash’ stablecoins,” the company said, adding that its flagship product, eUSD, will be the first bank-issued, on-chain U.S. dollar stablecoin, offering consumers and businesses a secure, compliant way to use digital cash for payments, remittances, and savings.
“Notably, it is also the first bank charter to explicitly authorize connecting U.S. consumers to DeFi,” it added.
‘Evolution of Money’
“Telcoin’s eUSD and other global Digital Cash stablecoins represent an evolution of money that is programmable and interoperable, designed to move seamlessly across blockchain and traditional financial rails,” Telcoin said in a statement. “Unlike unregulated, offshore, or non-bank stablecoins, eUSD is fully backed by U.S. dollar deposits and short-term Treasuries held in regulated reserves. Telcoin believes that the trust that comes with being regulated as a bank will drive consumer adoption as well as the institutional adoption needed to scale blockchain-powered finance to the broader market.”
Making History
According to Paul Neuner, Telcoin’s founder and CEO, “Our charter makes history, and not just for Telcoin, but for the entire U.S. banking system. We’re proving that a bank can issue on-chain Digital Cash responsibly and operate in full alignment with U.S. regulators. eUSD brings the speed, transparency, and affordability of blockchain into everyday finance in a way that anyone can use.”
Aided by GENIUS Act
The company noted the approval coincides with the recent passage of the GENIUS Act, which provides federal guidance for stablecoins and digital assets.
“While blockchain industry peers are seeking to operate as non-depository trust charters, Telcoin is providing a solution to the systemic risk concerns around stablecoins expressed by federal regulators,” the company said.
Assisting Community Banks
Telcoin Digital Asset Bank said also intends to help community banks nationwide adapt to the evolving technology. “
There are almost 5,000 banks in the U.S., and only the largest 5% of them will be able to do digital assets in-house,” Patrick Gerhart, president of banking operations at Telcoin, said in a statement. “We look forward to helping the other 95% of U.S. banks stay relevant and connect to blockchain-based finance in a safe and sound manner.”
