The Texas Department of Banking has given state chartered banks in the country the go ahead to store crypto for its customers. The regulatory body is responsible for chartering state banks and overseeing financial services. Banks are permitted to offer custodial services for virtual currencies provided they follow the law and install mechanisms to manage the risks involved.
This announcement comes shortly after the authorities-the Texas House of Representatives passed a crypto-friendly bill which aimed at recognizing them under commercial state law.
The regulator, speaking on behalf of the agency, stated that the banks would provide secure custodial services given the stringent security measures they had in place. He further urged banks to look into insurance as an extra safety measure for their virtual currency holdings.
The uptake of virtual currencies has steadily gained momentum globally. Iran has granted banks permission to accept cryptocurrency as a form of payment. Williston in North Dakota recently started accepting utility bill payments in the form of crypto and Tesla initially accepted Bitcoin as payment as well.
The use of crypto has also crept into unconventional fields such as the world of sports and contributions towards charity.