Monet Bank, a Texas-based community bank, has officially announced its entry into the cryptocurrency lending and digital asset banking space, taking its place among the crypto-focused banks in the United States.
The bank, owned by billionaire businessman Andy Beal and a prominent supporter of President Donald Trump, positions itself as an "infrastructure bank for digital assets." According to official records, the bank has assets of just under $6 billion and capital of approximately $1 billion.
Monet Bank's Transformation and Goals
Monet Bank's website states that it aims to be "a leading digital asset financial institution, committed to providing innovative and forward-thinking solutions for the digital economy." Launched in 1988 as Beal Savings Bank, the bank first changed its name to XD Bank this year and then rebranded as Monet Bank two months later. The bank, which is regulated by the FDIC and has six branches, appears to have completed its organizational transformation around digital assets.
Owner's Background
The bank's owner, Andy Beal, is known for his extensive financial support for Donald Trump during the 2016 election, as well as being the founder of Beal Financial Corp.
The Growing Crypto-Banking Landscape
Monet Bank joins a small number of US banks aiming to serve the crypto industry. In October, the US Office of the Comptroller of the Currency (OCC) granted a conditional bank license to tech-focused Erebor Bank. Erebor is backed by Peter Thiel, a founder of Founders Fund and an investor in CoinDesk's parent company, Bullish. Meanwhile, this week, former Signature Bank executives launched N3XT, a small-cap crypto bank operating in Wyoming under a Special Purpose Depository Institution (SPDI) license. N3XT aims to process payments instantly via a private blockchain network.