Gov. Pillen Signs First-In-Nation Digital Asset Bank Charter

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Laura Strimple, (402) 580-9495

Gov. Pillen Signs First-In-Nation Digital Asset Bank Charter

LINCOLN, NE - Governor Jim Pillen, joined by Nebraska Department of Banking and Finance (NDBF) Director Kelly Lammers, issued a charter to Telcoin Digital Asset Bank to operate a digital asset depository institution in Nebraska. This new charter for a digital asset bank is the first of its kind in the United States.

"With this first-in-the-nation approach, Nebraska is leading a new era of digital payments by issuing a charter to a digital asset bank that can 'mint' stablecoins," said Governor Jim Pillen. "Our message to the industry is simple: Nebraska is open for your business."

"This special purpose bank is designed under Nebraska law to ensure the payment is always good," said NDBF Director Kelly Lammers. "The funds backing each stablecoin are predominantly U.S. government bonds or deposits in FDIC-insured Nebraska banks. We appreciate Governor Pillen's support in pioneering a new type of bank for Nebraskans."

"We're very thankful to Governor Pillen, Congressman Flood, Director Lammers and his team for having the vision to see that this is about more than cryptocurrency. It's about the technology of money, payments, and banking - financial technology innovation right here in Nebraska," said Paul Neuner, founder and chief executive officer of Telcoin. "This charter is a milestone in the history of banking, but it also demonstrates that rural communities can play a part in emerging technologies - Norfolk, Nebraska can be at the center of the internet of money."

For Nebraskans, stablecoins - a version of cryptocurrency designed to maintain a steady value - may soon be another payment option alongside checks, debit cards, and digital wallets.

Telcoin's Digital Asset Banks charter under the Nebraska Financial Innovation Act will allow them to operate a stablecoin and digital asset business within the regulated financial industries of Nebraska, bringing together financial innovation and banking.

By effectively and efficiently regulating chartered digital asset entities such as Telcoin Digital Asset Bank, the NDBF will help ensure that Nebraska remains at the forefront of financial innovation and supervise all chartered digital asset entities to ensure they operate in a safe and sound manner.

Nebraska has been a leader in developing a regulatory framework for digital assets. On May 26, 2021, the Nebraska Financial Innovation Act was signed into law and became effective on October 1, 2021. It was championed by Mike Flood, now-U.S. Representative for Nebraska's 1st District.