Five “Blockchain banks” Including Kraken Coming to Wyoming by Summer 2020
- Wyoming officially proclaimed the crypto haven of the US
- A long process but the opportunity is Wyoming’s to grab
About five new blockchain banks are coming to Wyoming by summer 2020 and could bring in as much as $20 billion in assets as applications open for the new type of bank charter Oct. 1, reported local site, Wyoming Business Report.
In 2019, by passing a law that allows for “Special Purpose Depository Institutions” in the state, Wyoming became a national first to serve the “underserved” financial markets including cryptocurrency, blockchain, paycheck lending, coal, and firearms. Lawmakers are currently working on refining this law.
Wyoming officially proclaimed the crypto haven of the US
“I heard a fun phrase this week that an East Coast state is aspiring to copy us and be the ‘Wyoming of the East’ for digital assets,” Caitlin Long has been quoted as saying.
Long, a member of the Wyoming Blockchain Task Force spearheaded getting the SPDI law and a bunch of other blockchain-related bills ready for lawmakers.
The new charts, informally known as SPDI banks, don’t require Federal Deposit Insurance Corp. backing, rather rely on a 100% cash resource for securing all crypto assets. Long, who is a University of Wyoming and Harvard graduate said SPDI banks could be big for Wyoming.
She compares these crypto-related legislations to South Dakota’s efforts to change usury laws in the early 1980s that attracted new business to the state during an economic recession.
“IT BEGINS!! Wyoming is the “cryptocurrency haven of the United States,” as @GovernorGordon just officially proclaimed, kicking off the Wyoming Blockchain Stampede!,” she wrote on Twitter, excited about the upcoming WyoHackathon 2019 and Task Force meeting this week.
IT BEGINS!! #Wyoming is the “#cryptocurrency haven of the United States,” as @GovernorGordon just officially proclaimed, kicking off the Wyoming #Blockchain Stampede! See you at @wyohackathon in Laramie this Friday-Sunday, and/or Task Force meeting Thursday-Friday! 🤠 @krakenfx pic.twitter.com/nvVcc4Morc
— Caitlin Long 🔑 (@CaitlinLong_) September 16, 2019
A long process but the opportunity is Wyoming’s to grab
The five companies that have expressed their intention to apply for a charter in Wyoming are likely to contribute about $4 million in tax revenue, which would help the state that is struggling to make ends meet with its “floundering budget.”
Major cryptocurrency exchange from San Francisco, Kraken is one of the most prominent of these companies.
“It’s the first time we’ve been willing to make such a projection, but I have sufficient visibility into it at this point,” Long said.
However, this is not a sure thing yet as the chartering process will take about nine months and two of the institutions are asking for technical corrections to the law.
Despite all these uncertainties, Long is confident as “the pipeline is real, and the opportunity is Wyoming’s to grab.”
For now, Long expects each new charter — with the banks that won’t be like traditional ones — to bring in about five to dozens of executive jobs per location.
“Wyoming didn’t have to spend money to attract these companies to be here,” Long said.