Old Glory Bank targets Q1 2027 launch for crypto platform

In a Nov. 12 post on X, the bank said it had $280 million in assets and about $20 million in loans, and was roughly 90% liquid, with assets held in floating-rate agency bonds. It said the additional capital would support anticipated growth from NextGen.

The proposed platform would combine checking and savings accounts, loans and views of holdings in customers’ self-custodial wallets, including MetaMask. The merger prospectus also described exchanges between dollars and a bank-issued payment stablecoin, a service called Freedom Offramp to convert accepted digital assets into dollars deposited in customers’ accounts, and crypto-backed credit lines. The stablecoin was described as backed by cash and short-term U.S. Treasuries; management’s working reserve model was 20% cash and 80% Treasuries, though the allocation was not final.

Old Glory’s current FAQ lists HBAR and XDC for the initial launch, followed by XRP, Bitcoin and Stellar’s XLM. It leaves questions about XRP rails, PulseChain support, and wallet or trading fees marked “answer TBD.” The FAQ gives no launch day or schedule for later asset additions, and says customers can use conventional banking, crypto services or both.

Financing and regulatory requirements

In an August letter to the Federal Reserve, CEO Mike Ring said the proposed business combination with Digital Asset Acquisition Corp., a special purpose acquisition company, needed conditional approval before shareholder voting and redemption deadlines in July. Ring said the Fed asked about the vote, redemptions, funds left in the acquisition company’s trust and projected capital ratios after closing. He argued that uncertainty over approval discouraged investors from leaving money in the transaction. The bank has attributed the financing setback to the Fed and said it believes its crypto plans were a factor.

A May 1, 2024, consent order with the FDIC and Oklahoma State Banking Department required a Tier 1 leverage capital ratio of 14% of average total assets, a written capital plan and stronger board supervision. Old Glory agreed to the order without admitting or denying the alleged unsafe practices and legal violations. It also required advance regulatory approval for certain new products, business lines and proposed business relationships, along with independent IT audits, cybersecurity improvements and quarterly compliance reports.