Texas-Based Monet Bank Ventures into Crypto Banking Sphere

Monet Bank Enters Crypto Banking

Monet Bank, a Texas-based community bank, has announced its foray into the crypto banking sector. The bank, owned by billionaire Andy Beal, aims to position itself as a leading digital asset financial institution. Despite its relatively small size, with less than $6 billion in assets and just over $1 billion in capital according to state records, Monet Bank is making significant strides in the digital economy.

History and Ownership

The institution, originally founded as Beal Savings Bank in 1988, recently underwent a couple of name changes, becoming XD Bank earlier this year before settling on Monet Bank. It operates under the regulation of the Federal Deposit Insurance Corp. (FDIC) and maintains six offices as per federal data.

Andy Beal, known for his high-stakes poker playing and support of former President Donald Trump, founded the bank's parent company, Beal Financial Corp. His involvement in Monet Bank's transition to a crypto focus was first reported by The Information.

Regulatory Environment

Monet Bank joins a growing list of financial institutions catering to the crypto industry. Recently, the Office of the Comptroller of the Currency (OCC) granted a conditional charter to Erebor Bank, and former executives from Signature Bank launched N3XT, a blockchain-powered bank. These developments occur as federal regulators, under the Trump administration, have eased their stance on crypto, retracting previous warnings and issuing new guidelines for crypto banking.

Travis Hill, acting chair of the FDIC, indicated to lawmakers that the agency plans to propose regulations for the crypto sector, specifically targeting stablecoins under the GENIUS Act.

Requests for comment from Beal's company were not immediately returned.