- Telcoin has received approval for its Digital Asset Depository Bank Charter in Nebraska
- This positions Telcoin as the first federally regulated digital asset depository bank in the USA
- With this charter, Telcoin can now issue stablecoins and hold deposits at a Federal Deposit Insurance Corporation.
In a landmark decision, the Nebraska Department of Banking and Finance has given the green light to Telcoin, Inc., allowing it to become the first federally regulated digital asset depository bank in the United States under the Nebraska Financial Innovation Act (LB 1074, 2024).
This approval, anticipated since the public hearing held in December 2024, marks a significant milestone in the integration of digital assets into the traditional banking framework.
Telcoin’s business plan
Telcoin’s application for this charter was accompanied by an extensive business plan, running into hundreds of pages with 29 appendices. This document, along with the detailed backgrounds of its directors and officers, demonstrated not only the adequacy but also the plausibility of Telcoin’s proposed operations.
The plan articulates a vision where Telcoin will issue US dollar-backed stablecoins, which it refers to as “Digital Cash” or eUSD, to facilitate its safekeeping and seamless integration into mainstream financial systems using independent node verification networks.
The conditions for Telcoin to commence operations
The Digital Asset Depository Bank Charter approval was granted based on the assurance that Telcoin will operate safely and soundly.
Notably, the testimony of witnesses during the December 5, 2024, public hearing and the thoroughness of the business plan were pivotal in getting the approval.
To operate as a federally regulated digital asset depository bank within the US, Telcoin should maintain unencumbered liquid assets in US dollars, equivalent to 100% of the value of any outstanding stablecoins it issues, ensuring financial stability and consumer protection.
It must also adhere to stringent regulatory conditions, including providing a surety bond or pledge of assets worth $1 m