Abra Launching First US Regulated Crypto Bank

The digital asset company hopes to offer crypto yields with TradFi safeguards

article-image

Source: DALL·E

share
  • Abra Bank will launch in the US during Q1 2023, with an international bank to follow
  • “As a regulated licensed bank, it’s no longer my opinion [that matters] on transparency and public disclosures,” Abra’s CEO told Blockworks

Abra, the crypto exchange and lending platform, is launching the first US regulated crypto bank, the company said Monday.

The move, in the eyes of industry participants, is a bullish indicator that somewhat shakes off the sector’s bear market woes — plus the pending trips of crypto lenders Celsius and Voyager to bankruptcy court. 

Abra’s move positions the company in what has been a yearslong arms race within crypto to create the first US regulated interest-bearing crypto account — offering consumers crypto exposures with legal safeguards.

All customer deposits into Abra Bank are set to be converted into stablecoins that accrue interest similarly to traditional banks. The bank will allow customers to transfer funds into over 100 cryptocurrencies. Abra also partnered with American Express in June to launch a crypto credit card.

Abra Bank’s services — asset custody, lending and staking — are already offered by a variety of other crypto firms, but Abra Bank’s regulatory guardrails make it stand out from competitors, according to Abra CEO Bill Barhydt.

“As a regulated licensed bank, it’s no longer my opinion on transparency and public disclosures. The banking laws take over and require disclosures on assets, liabilities and risk management processes,” Barhydt told Blockworks.

Abra’s maneuver comes amid Chapter 11 bankruptcy proceedings for Celsius and Voyager Digital, two companies that operated as ersatz banks offering high yields before going belly-up. Voyager Digital infamously misled customers to believe the crypto lender was FDIC insured. Abra is looking to make good on that premise.

In the US, insured banks must prove to regulators they have enough assets available to support their risk profile. Abra has completed this process and plans to launch sometime before the second quarter of 2023.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (1).png

Research

Aave’s revenues have doubled from April lows and are fast approaching all-time highs. With 35% of borrow interest coming from ETH and 55% from stablecoins, Aave is emerging as a powerful proxy as an ETH and stablecoin beta. As looping strategies accelerate growth and Horizon positions the protocol to ride the RWA wave, Aave is shaping up as one of DeFi’s most compelling multi-narrative plays.

article-image

Lehman becomes Pantera’s fourth junior partner

article-image

The DAT trend may differ from prior implosions

article-image

The exchange has filed a proposal to let investors settle equities on-chain with full shareholder rights, according to reports

by Blockworks /
article-image

If AI is a replacement for humans, wouldn’t companies fire the expensive ones first?

article-image

Lawmakers are expected to consider the new version at the end of September

article-image

Bitwise investment strategist expects end to “the wild-west phase of public companies …turning into crypto vehicles”