Monet Bank's Strategic Shift Towards Digital Assets
A community bank in Texas has transformed itself into a crypto-friendly lender, a move reflecting the growing interest in digital assets among smaller financial institutions. The bank, Monet Bank, formerly one of the federally chartered banks owned by billionaire backer Andy Beal, has repositioned itself to serve cryptocurrency firms and digital-asset businesses, according to a recent regulatory approval from the Texas Department of Banking.
This move is part of the community bank’s goal to transform into a modern bank, focusing on digital finance and cutting-edge digital solutions rather than conventional consumer banking. The announcement was made public after the Texas-based bank shared its website, highlighting that “Monet aims to be the top financial institution for digital assets, offering creative and modern solutions for the digital economy.”
Financial Institutions Embrace the Crypto Ecosystem
Following a supportive stance towards crypto, Beal decided to explore the crypto ecosystem. This decision reflects a growing trend among financial institutions that are adopting and accepting cryptocurrencies in their operations. The Texas lender began operating in 1988 as Beal Savings Bank. Earlier this year, it adopted a new name and started referring to itself as XD Bank. Two months later, it changed its name again to Monet Bank.
The Federal Deposit Insurance Corporation monitors this state-chartered bank, with reports from federal records also indicating that the bank operates six branches. Notably, Monet Bank is viewed as a very small community bank because it has less than $6 billion in assets and a little more than $1 billion in capital, according to state records. However, even with this challenge, the financial institution still pushed forward its goal of exploring the crypto industry.
The news on the Texas bank’s shift towards digital assets was made public on Friday, December 5, by The Information. Sources close to the matter noted that this decision places the bank among a growing number of banks that are seeking to serve the crypto market.
Meanwhile, as financial institutions express growing interest in the crypto space, reports dated October this year mentioned that the Office of the Comptroller of the Currency (OCC) granted Erebor Bank, a new tech-based company supported by Peter Thiel from Founders Fund, a conditional charter. Moreover, former firm leaders from Signature Bank introduced a narrow bank with a Wyoming Special Purpose Depository Institution charter known as N3XT earlier this week. They claimed that this new financial institution would streamline the payment process using a private blockchain. This change marks a broader shift in how federal bank regulators approach cryptocurrency.
Supportive Regulatory Environment for Crypto
Since President Trump assumed the presidency of the United States, several restrictions related to the cryptocurrency sector have been lifted to support this rapidly growing industry. Some of these restrictions have been removed, including previous warnings issued to banks regarding the exercise of caution with crypto. The president’s administration has also established new guidelines to assist the crypto industry in gaining improved access to banking services.
To further support the crypto ecosystem, Travis Hill, the acting chair of the FDIC, submitted a proposal notifying the relevant authorities that his agency intends to propose new regulations governing the crypto industry, specifically those related to the stablecoin-focused GENIUS Act. The proposal was submitted during a hearing earlier this week.
In the meantime, when reporters reached out to Beal’s company to comment on their progress in exploring the crypto industry, a request was sent to a media contact at Beal Bank, but the firm declined to respond.