Mone Bank, a small community bank in Texas owned by a billionaire political ally of President Donald Trump, has entered the space of crypto lenders, billing itself as an “infrastructure bank” with a focus on digital assets. According to the company’s website, “Monnet is focused on becoming the premier digital asset financial institution, providing innovative and forward-looking solutions for the digital economy.” With less than $6 billion in assets and just over $1 billion in capital, the institution is considered a very small community bank, according to state records.
The Texas financial institution opened in 1988 as Beal Savings Bank, changed its name to XD Bank earlier this year, and then again to Monet Bank two months later. The state-chartered agency is regulated by the Federal Deposit Insurance Corporation and has six offices, according to federal data.
Andy Beal, the founder and owner of Beal Financial Corporation, is known as a high-level poker player and was a major backer of President Trump’s successful presidential campaign in 2016, funding his own political action committee. The Information first reported on Mone Bank’s shift to focus on digital assets early Friday.
This joins a slowly growing field of banks aimed at servicing the cryptocurrency industry. In October, the Office of the Comptroller of the Currency (OCC) granted conditional approval to Erebor Bank, a tech-focused new company backed by Founders Fund’s Peter Thiel (who also invested in CoinDesk’s parent company Burish). And earlier this week, former Signature Bank executives launched N3XT, a narrowbank licensed as a Wyoming special purpose depository institution, that they say will instantly settle payments through private financial institutions. blockchain.
The change comes amid broader changes in how federal banking regulators approach cryptocurrencies. Since Trump took office, his regulators have rescinded existing guidance warning banks they oversee to be cautious when handling cryptocurrencies and issued new guidance aimed at giving the crypto industry better access to banking services.
Acting FDIC Chairman Travis Hill told lawmakers that the FDIC plans to propose crypto industry rules related to the GENIUS Act, which will focus on stablecoins, at a hearing earlier this week.
Mr. Beer’s company did not immediately respond to a request for comment sent to the media department of its affiliate Beer Bank.
