Cornhusker State News

Governor Jim Pillen has issued the nation’s first charter for a digital asset bank, allowing Telcoin Digital Asset Bank to operate as a digital asset depository institution in Nebraska. The announcement was made in Lincoln with Nebraska Department of Banking and Finance (NDBF) Director Kelly Lammers present.

“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.”

Director Lammers explained the regulatory framework behind the move. “This special purpose bank is designed under Nebraska law to ensure the payment is always good,” he said. “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.”

Paul Neuner, founder and chief executive officer of Telcoin, emphasized both technological innovation and local impact: “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,” Neuner stated. “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.”

Stablecoins—cryptocurrencies intended to maintain steady value—may soon become an additional payment option for Nebraskans alongside checks, debit cards, and digital wallets.

Telcoin’s new charter was granted under the Nebraska Financial Innovation Act. This legislation was signed into law on May 26, 2021 and became effective October 1 that year after being championed by Mike Flood, now U.S. Representative for Nebraska’s 1st District.

The NDBF will regulate Telcoin Digital Asset Bank and other similar entities operating under charters issued through this framework to ensure safe operations within regulated financial industries.

Nebraska continues its efforts to remain at the forefront of financial innovation by providing clear regulations for companies dealing with digital assets.