Small Texas Lender Enters Competitive Crypto Banking Sector

Monet Bank, a small community bank in Texas, has entered the competitive crypto banking sector. The bank, owned by billionaire political supporter Andy Beal, aims to establish itself as a premier digital asset financial institution, focusing on innovative solutions for the digital economy.

Monet Bank, which was established in 1988 as Beal Savings Bank and has undergone several name changes, currently has less than six billion dollars in assets and just over one billion dollars in capital, according to state records.

The bank operates under federal regulation by the Federal Deposit Insurance Corp. and has six branches. This development is part of a broader trend where more banks are seeking to serve the crypto industry, following recent shifts in regulatory approaches towards digital assets.

Notably, the Office of the Comptroller of the Currency recently granted a conditional charter to Erebor Bank, and former executives from Signature Bank have launched N3XT, a bank designed for instant payment settlements via blockchain.

The evolving regulatory landscape underlines a growing acceptance and integration of cryptocurrency services in traditional banking. The Federal Deposit Insurance Corp.'s acting chair, Travis Hill, has indicated plans to propose new rules for the crypto sector linked to the GENIUS Act, which focuses on stablecoins.

Beal's company did not provide immediate comments regarding the bank's new focus on digital assets.