The crypto market is racked with turmoil right now, but that’s not stopping some companies from pushing the envelope. Innovation doesn’t slow down in a bust cycle, and Abra is showing this to be true. The company is announcing plans to take crypto to the next level — bridging traditional banking and decentralized finance (DeFi) for an American audience. And given the U.S. government’s recent interest in regulating the crypto world, the news comes as quite a surprise.
Abra is one of the leading crypto financial services companies in terms of offerings. Indeed, the company has been rapidly expanding the scope of its services to cover its bases and then some. In April, it rolled out its real estate service. Through this, investors could use cryptocurrency for collateral in order to receive home loans. In June, it continued this expansion with an American Express (NYSE:AXP) credit card which rewards purchases with Bitcoin (BTC-USD).
These are innovative services in that they are fairly unique and appealing to investors. They are also quite brash products to roll out just as the U.S. government starts to clamp down tightly on the crypto world. Indeed, these services came just weeks after the first piece of crypto legislation — an executive order by President Joe Biden calling for deep research and scrutiny of the market.
In recent months, this scrutiny is becoming more intense, with the U.S. Department of the Treasury laying down the first product sanctions and the Securities & Exchange Commission (SEC) cracking down with more arrests and complaints. However, Abra is evidently not concerned; it’s about to launch its biggest new offering yet.
Abra Crypto Bank to Roll Out in 2023
Abra isn’t worried that its products will violate whatever hard-nosed crypto legislature the U.S. government will produce over the course of the next year. The company has thus far kept itself out of the hot seat, carefully working to ensure none of these products will upset regulators. Its newest offering will be its biggest thus far, and it’s working with the government to ensure everything remains in spec.
As Abra announced this week, it is planning on opening a U.S.-based crypto bank as early as 2023. Called “Abra Bank,” the company says the bank will offer basically the same services that one might find at a traditional bank, retrofitted for cryptocurrency. It says it is working with regulators to ensure all of these products remain within the realm of expectations — an important step to get ahead of the many infrastructure policies that will come down the pipeline in the near future.
The goal of the bank is to help expand Abra’s reach, to help it become the “default Web3 wallet and crypto bank for everyone,” according to the company’s press release.
Alongside this bold new crypto banking product comes an internationally-aimed service called Abra Boost. This service, set to launch in early October, will provide staking services for those keeping assets under Abra’s custody. Outside the U.S., the service will be available to any and all qualified investors. Though, in the States, Abra Boost will only be available to accredited institutional investors.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.