Digital currencies skyrocketed during the pandemic and Texas doesn’t want to be left out of a future boom in the industry.
The Texas Department of Banking sent out an industry notice Thursday to let state-chartered banks know that they have the authority to provide custody, or safekeeping, services for virtual currencies. As of the end of February, there were 216 Texas state-chartered banks regulated by the Department of Banking.
“Texas is seeing the rise in the virtual currency industry and trying to get out ahead of it and ensure our regulated banks are prepared to remain competitive,” said Marcus Adams, the state banking department’s assistant general counsel.
This isn’t a new law, but rather the state determining that existing law allows this.
If a customer holds their own Bitcoin or other virtual currency, that means they have private keys in a wallet to access their currency. But in Texas, they can turn that responsibility over to a third-party bank. The bank can either…