- Telcoin received a Nebraska banking charter to launch the Digital Asset Depository Institution.
- eUSD becomes the first bank-issued, on-chain U.S. dollar stablecoin with full backing.
- Charter explicitly authorizes connecting U.S. consumers to protocols through banking framework.
Telcoin has announced final charter approval from the Nebraska Department of Banking and Finance to launch Telcoin Digital Asset Bank, the first Digital Asset Depository Institution in the United States. The charter positions Telcoin to become the first blockchain bank directly connecting U.S. bank accounts to regulated stablecoins.
The company’s flagship product, eUSD, will be the first bank-issued, on-chain U.S. dollar stablecoin. The token offers consumers and businesses a regulated method to use digital cash for payments, remittances, and savings.
Full reserve backing differentiates product
Telcoin’s eUSD and other global digital cash stablecoins are programmable and interoperable money designed to move easily across blockchain and traditional financial infrastructure. Unlike unregulated or offshore stablecoins, eUSD is backed entirely by US dollar deposits and short-term Treasuries kept in regulated reserves.
“Our charter makes history, and not just for Telcoin, but for the entire U.S. banking system,” said Paul Neuner, Telcoin’s founder and CEO. “We’re proving that a bank can issue on-chain Digital Cash responsibly and operate in full alignment with U.S. regulators.”
The approval coincides with passage of the GENIUS Act, which provides federal guidance for stablecoins and digital assets. While other blockchain companies aspire to operate as non-depository trust charters, Telcoin is trying to solve systemic risk concerns raised by federal regulators about stablecoins.
“For us, this is not about stablecoins pulling money out of the banking system, but rather upgrading the technology of money, payments, and banking itself,” Neuner stated. The bank’s native transaction medium is a regulated, on-chain digital dollar directly connected to U.S. account numbers. Beyond stablecoin issuance, the bank plans to provide compliant stablecoin yield offerings along with retail and commercial depository services, subject to regulatory approval.
Telcoin Digital Asset Bank intends to help community banks nationwide adapt to changing technology. Patrick Gerhart, president of Banking Operations at Telcoin, stated that there are almost 5,000 banks in the U.S. He also added that they look forward to helping the other 95 percent of U.S. banks stay relevant.
By aligning digital assets within a regulated banking framework, Telcoin Digital Asset Bank bridges the $4 trillion blockchain economy with traditional finance. This concept shows how digital cash may help community banks strengthen their balance sheets and empower small companies.
Related: https://coinedition.com/jpx-reviews-listing-rules-to-curb-corporate-crypto-hoarding/
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Source: https://coinedition.com/telcoin-launches-eusd-stablecoin-after-receiving-first-u-s-digital-asset-bank-charter/
