OpenReserve Bank Receives Approval for National Bank Charter

OpenReserve Bank, backed by Andreessen Horowitz, received preliminary conditional approval from the Office of the Comptroller of the Currency on September 2 to charter a full-service national bank in Salt Lake City, Utah. The approval follows a review of nearly five months after OpenReserve filed its application on April 13. OpenReserve, a blockchain-native fintech startup, raised 25 million dollars in a seed round led by a16z crypto, with other investors including Coinbase Ventures and Jump Capital. The bank aims to provide continuous, blockchain-based settlement services. OpenReserve must raise at least 210 million dollars in initial paid-in capital and maintain a Tier 1 leverage ratio of at least 12% during its first three years. It has 12 months to raise the capital and 18 months to open, or the approval will expire. Co-founder Diwakar Choubey emphasized the choice of a national bank charter over a national trust charter, which limits deposit-taking and lending. OpenReserve plans to focus on tokenized deposits, treasury management, and a banking-as-a-service platform for institutional clients. It also intends to create a subsidiary for issuing U.S. dollar-denominated stablecoins, which must comply with the GENIUS Act. The OCC also granted preliminary approval to British fintech Revolut for a national bank in Connecticut.

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