Wyoming is leading one of the latest trend in finances—cryptocurrency—by being the first US state to OK a bank that caters to users of cryptocurrency.
The Wyoming Banking Division recently approved Kraken’s application to create the world’s first Special Purpose Depository Institution (SPDI). It will be the first “crypto-bank,” but not be a bank in the fullest meaning of the word or in the traditional sense.
“Wyoming’s new charter will allow those using digital assets, like cryptocurrency, to access reliable financial services, protect consumers, and allow businesses a way to hold digital assets safely,” Wyoming Governor Mark Gordon said. “I am proud that our state is leading the way and built the framework for this historic announcement. Thanks to Ogden Driskill, Tyler Lindholm, Jared Olsen, Chris Rothfuss and Caitlin Long, as well as Albert Forkner of the Wyoming Banking Division, who all played a role in creating a solid and effective regulatory environment. Wyoming is taking its rightful place globally as a fintech leader.”
Kraken did not return a request for comment on the approval.
But the banking approval bodes well for the state, since it places Wyoming at the forefront of an already hot market. Partly because the growth of this new currency has been gaining momentum for several years, industry forecasters say it will boom for a while. Experts believe the growth in the market will increase for many years to come.
In 2019, the cumulative market capitalization of cryptocurrencies was $237 billion, according to statista.com.