Nebraska state officials issued a charter to Telcoin Digital Asset Bank to operate a digital asset depository institution in the state.
This charter for a digital asset bank is considered the first of its kind in the United States, according to state officials.
“With this first-in-the-nation approach, Nebraska is leading a new era of digital payments by issuing a charter to a digital asset bank that can ‘mint’ stablecoins,” Nebraska Gov. Jim Pillen said. “Our message to the industry is simple: Nebraska is open for your business.”
Telcoin’s Digital Asset Bank charter is permitted under the Nebraska Financial Innovation Act. It will allow the bank to operate a stablecoin and digital asset business within the regulated financial industries of Nebraska, bringing together financial innovation and banking.
“This special purpose bank is designed under Nebraska law to ensure the payment is always good,” Nebraska Department of Banking and Finance (NDBF) Director Kelly Lammers said. “The funds backing each stablecoin are predominantly U.S. government bonds or deposits in FDIC-insured Nebraska banks. We appreciate Governor Pillen’s support in pioneering a new type of bank for Nebraskans.”
For residents of Nebraska, stablecoins – a version of cryptocurrency designed to maintain a steady value – may soon be another payment option alongside checks, debit cards, and digital wallets.
“We’re very thankful to Governor Pillen, Congressman Flood, Director Lammers and his team for having the vision to see that this is about more than cryptocurrency. It’s about the technology of money, payments, and banking – financial technology innovation right here in Nebraska,” Paul Neuner, founder and CEO of Telcoin, said. “This charter is a milestone in the history of banking, but it also demonstrates that rural communities can play a part in emerging technologies – Norfolk, Nebraska can be at the center of the internet of money.”
By regulating chartered digital asset entities such as Telcoin Digital Asset Bank, the NDBF will supervise all chartered digital asset entities to ensure they operate in a safe and sound manner.
Nebraska has been at the forefront in developing a regulatory framework for digital assets with the Nebraska Financial Innovation Act signed into law on May 26, 2021.