Charter approval allows Telcoin Digital Asset Bank to establish a bridge between traditional banking and decentralized finance, including the creation of eUSD as the nation’s first bank-issued stablecoin.
Telcoin announced its final charter approval from the Nebraska Department of Banking and Finance to launch Telcoin Digital Asset Bank, the first Digital Asset Depository Institution in the United States. The charter positions Telcoin to become the first true blockchain bank, directly connecting U.S. bank accounts to regulated “Digital Cash” stablecoins. Its flagship product, eUSD, will be the first bank-issued, on-chain U.S. dollar stablecoin, offering consumers and businesses a secure, compliant way to use Digital Cash for payments, remittances, and savings. Notably, it is also the first bank charter to explicitly authorize connecting U.S. consumers to DeFi.
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Telcoin’s eUSD and other global Digital Cash stablecoins represent an evolution of money that is programmable and interoperable, designed to move seamlessly across blockchain and traditional financial rails. Unlike unregulated, offshore, or non-bank stablecoins, eUSD is fully backed by U.S. dollar deposits and short-term Treasuries held in regulated reserves. Telcoin believes that the trust that comes with being regulated as a bank will drive consumer adoption as well as the institutional adoption needed to scale blockchain-powered finance to the broader market.
“Our charter makes history, and not just for Telcoin, but for the entire U.S. banking system,” said Paul Neuner, Telcoin’s Founder and CEO. “We’re proving that a bank can issue on-chain Digital Cash responsibly and operate in full alignment with U.S. regulators. eUSD brings the speed, transparency, and affordability of blockchain into everyday finance in a way that anyone can use.”
The approval coincides with the recent passage of the GENIUS Act, which provides long-awaited federal guidance for stablecoins and digital assets. While blockchain industry peers are seeking to operate as non-depository trust charters, Telcoin is providing a solution to the systemic risk concerns around stablecoins expressed by federal regulators.
“For us, this is not about stablecoins pulling money out of the banking system, but rather upgrading the technology of money, payments, and banking itself,” Neuner explains, adding that the bank’s native medium of transaction is a regulated, on-chain digital dollar directly connected to U.S. account numbers. More than just a stablecoin issuer, the bank plans to provide compliant stablecoin yield offerings along with a suite of retail and commercial depository services, subject to regulatory approval.
Telcoin Digital Asset Bank also intends to help community banks nationwide adapt to the evolving technology. “There are almost 5,000 banks in the U.S., and only the largest five percent of them will be able to do digital assets in-house,” said Patrick Gerhart, President of Banking Operations at Telcoin. “We look forward to helping the other 95 percent of U.S. banks stay relevant and connect to blockchain-based finance in a safe and sound manner.”
By aligning digital assets within a regulated banking framework, Telcoin Digital Asset Bank bridges the $4 trillion blockchain economy with traditional finance to unlock this technology for modern money, capital markets, and finance on the internet. This model demonstrates how Digital Cash can strengthen community bank balance sheets, empower small businesses, and modernize payments at scale, setting a new standard for how blockchain and banking can work together.
“We’ve been working toward this landmark for years, and now Telcoin Digital Asset Bank gets to serve as a prime example for how both compliance and innovation can work together to elevate the standard of banking,” adds Neuner. “On a global stage, Telcoin will demonstrate how local institutions, national regulators, and international innovators can move together to make money flow at the speed of the internet.”
Governor Jim Pillen signed the charter at the Nebraska State Capitol in Lincoln , where the Nebraska Financial Innovation Act became law in 2021. That initiative, spearheaded by former Nebraska Speaker and current U.S. Congressman Mike Flood, laid the foundation for charter issuance. Nebraska Department of Banking and Finance Director Kelly Lammers was also instrumental in developing the Digital Asset Depository Institution charter from the NFIA, placing Nebraska at the center of the national landscape for blockchain banking innovation.
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