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- Stablecoin company Agora received preliminary conditional approval from the OCC to establish Agora National Trust Bank in New York.
- The OCC requires Agora to maintain at least $10 million in Tier 1 capital before final approval.
- Agora must complete remaining preopening requirements and receive final OCC authorization before the bank can open.
Stablecoin company Agora has received preliminary conditional approval from the U.S. Office of the Comptroller of the Currency to establish Agora National Trust Bank in New York.
The Sept. 18 approval does not allow the bank to open yet. Agora must complete the OCC’s preopening requirements and receive final approval and authorization before beginning operations.
AUSD Issuance Would Move From Bermuda to U.S. Bank
Agora National Trust Bank would operate as a limited-purpose trust company serving institutional and business customers rather than retail depositors.
Its approved business plan covers dollar-backed stablecoin issuance and reserve maintenance, digital asset custody, payment and settlement services, cross-border transactions and fiduciary investment advice for selected custody clients.
Once the bank is established, Agora plans to transfer issuance of AUSD from Agora Bermuda Limited to the U.S. entity through a cutover involving the stablecoin’s underlying reserve assets, accounts and associated liabilities.
The transition would bring AUSD issuance and related infrastructure under direct OCC supervision.
OCC Requires at Least $10M in Tier 1 Capital
Final approval depends on Agora meeting capital, liquidity, governance, and compliance conditions imposed by the OCC.
The proposed bank must maintain at least $10 million in Tier 1 capital. The greater of 50% of its Tier 1 capital or $5 million must be held in eligible liquid assets during its first three years of operation.
Agora National Trust Bank must separately maintain eligible liquid assets equal to 180 days of operating expenses, without double-counting assets used to satisfy the Tier 1 liquidity requirement.
The bank must also obtain OCC clearance for senior executives and directors and engage an independent external auditor. Its activities, including stablecoin issuance and redemption, must be changed or discontinued where necessary to comply with the GENIUS Act and implementing regulations.
Final OCC Authorization Required Before Bank Can Open
The OCC can modify, suspend or rescind its preliminary approval before the bank opens if interim developments warrant further action.
Agora must complete its remaining preopening requirements and examination before the OCC grants final approval and authorization to commence business. The proposed institution will operate as an uninsured national trust bank rather than an FDIC-insured deposit-taking bank.
Agora said the charter would bring its stablecoin, custody, and transaction infrastructure under direct federal supervision. Until the preopening process is complete, Agora National Trust Bank cannot begin operations.
