Earlier today, at SALT New York 2022, Abra announced that we are in the process of forming Abra Bank, a US state-chartered institution, that will serve our customers in the US; and Abra International, a fully regulated digital asset business outside the US, that will serve our customers outside the US.
Abra Bank, when it launches, will be the first regulated bank in the US that will enable our customers in the US to deposit and bank with digital assets, and access global fiat on and off ramps. Abra International, when it launches, will enable the same for our customers outside the US.
Why is Abra planning to launch a bank?
Abra believes that the best way to become the default Web3 wallet and crypto bank for everyone is by embracing a global regulatory framework that provides for transparency, oversight, security, and agency.
Transparency means that Abra is committed to public disclosures on assets, liabilities, and risk management processes.
Oversight means that Abra will work with global regulators, including US and state banking regulators, to rightsize our compliance and legal oversight to minimize customer disruptions while ensuring adherence to local laws and regulations wherever applicable.
Security means that Abra is committed to ensuring that the protection of customer funds and digital assets are always the top priority for Abra.
Agency means that your assets remain your assets – it’s as simple as that. We believe in the ethos of “not your keys not your crypto,” but we recognize that people and companies need help to manage their digital assets. Abra will provide the on-ramps, off-ramps, and transactional services to make crypto and Web3 work for everyone.
Abra believes that the only way to achieve the above and serve our customers responsibly and sustainably is by operating as regulated entities starting with Abra Bank in the US and Abra International outside the US.
Launching Abra Boost!
As part of the process of forming Abra Bank in the US and Abra International outside the US, Abra will launch Abra Boost on October 3, 2022. Abra Boost is a new product offering that will enable all qualified investors to deposit and earn interest on their digital assets.
In the US, Abra Boost will be available to all institutional investors and individuals who are accredited investors. This requirement will be in effect until Abra Bank launches in the US.
Outside the US, Abra Boost will be available to all individual and institutional investors.
What happens to Abra Earn when Abra Boost launches?
When Abra Boost launches, all qualifying existing customers of Abra Earn, including individual and institutional investors, will be transitioned to Abra Boost. At the same time, Abra Earn will stop accepting new customers or assets. More information about the transition can be found here.
All investors, including individual and institutional investors both in the US and outside the US, who wish to add new assets to Abra to earn interest on them will need to be customers of Abra Boost.
What happens to Abra Trade and Abra Borrow when Abra Boost launches?
You will continue to enjoy Abra Trade and Abra Borrow exactly as you do today – there are absolutely no changes to Abra Trade and Abra Borrow as a result of today’s announcements.
What happens when Abra Bank and Abra International launch?
When Abra Bank launches in 2023, all customers of Abra in the US will be transitioned to Abra Bank and will continue to use Abra Trade, Abra Boost, and Abra Borrow in accordance with all applicable regulations and Abra’s standard terms of service.
When Abra International launches in late 2022, all customers of Abra outside the US will be transitioned to Abra International and will continue to use Abra Trade, Abra Boost, and Abra Borrow in accordance with all applicable regulations and Abra’s standard terms of service.
We believe that for Abra, this is a defining moment that brings us closer to our mission to make financial independence and well-being accessible to everyone, everywhere.
Stay tuned for more exciting announcements and updates in the near future.
Got questions? We have compiled a comprehensive list of frequently asked questions here.Download Abra
Established in 2014, Abra is on a mission to create a simple and honest platform that enables millions of cryptocurrency holders to maximize the potential of their assets. Abra enables both individuals and businesses to safely and securely buy, trade, and borrow against cryptocurrencies – all in one place. Abra’s vision is an open, global financial system that is easily accessible to everyone.
Based in the United States, Abra is available in over 150 countries and makes it easy to convert between crypto and a wide variety of local fiat currencies. With over 2MM customers, $7B in transactions processed, and $1.5B in assets under management, Abra continues to grow rapidly. Abra is widely loved and trusted – in April 2022, pymnts.com reviewed and rated Abra amongst the top 5 most popular crypto wallets in the market. Abra is backed by top-tier investors such as American Express Ventures and First Round Capital.
How Abra Protects Your Funds
Abra places clients’ financial objectives and security first. Abra practices a culture of risk management across all levels and functions within the organization.
Abra employs a state-of-the-art enterprise risk management framework that comprises a comprehensive set of policies, procedures, and practices detailing all applicable risk-related objectives and constraints for the entirety of the business. Abra has instituted a complete set of requisite systems and controls that continuously enforce these policies, procedures, and practices to manage all operations, including credit and lending. Abra’s independent Risk Committee comprises experienced compliance, risk, securities, and fraud operations professionals with backgrounds in industries ranging from traditional and digital assets banking, payments, remittance, to fintech.
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