FDIC Approves Deposit Insurance for Bank Targeting Digital-Asset Clients

The FDIC has approved federal deposit insurance for Augustus National Bank, N.A., a proposed Dallas national bank in organization that intends to serve digital-asset companies, technology companies, and high-net-worth individuals. 

The bank's organizers had already received preliminary conditional OCC approval for a national charter, and the bank is to operate as a wholly owned subsidiary of Augustus International, Inc., which has applied to the Federal Reserve Board to become a bank holding company. The bank plans to offer deposits, lending, virtual currency, payment, and treasury services to its target clients.

Through subsidiary Juno Moneta LLC, the bank intends to issue and redeem its own and partner stablecoins, along with providing stablecoin custody, conversion, and payment functionality.

Review of the application under the seven-factor test in FDIA Section 6 ("Factors to be considered") covered (i) financial history, (ii) capital adequacy, (iii) future earnings prospects, (iv) management character, (v) risk to the Deposit Insurance Fund, (vi) community convenience and needs, and (vii) consistency of corporate powers. The FDIC stated that these factors have been resolved favorably. The approval is subject to conditions including that the bank must have initial paid-in capital funds of not less than $73,660,000 and build various technical protocols.

The FDIC's consent expires one year from the date of the order - July 31, 2026 - unless deposit insurance has become effective by then or the FDIC approves a written request for an extension.