P2P platform Metal Pay received a money forwarding license from Washington State.
The startup is still awaiting the outcome of its application to become a federally authorized bank.
US-based peer-to-peer (P2P) payment platform Metal Pay’s cryptocurrency Metal Coin (MTL) saw a huge increase in trade on Monday after the opening announced that it received a money transfer license from the US state.
In a blog post announcing the success of licensing, Metal Pay said it had “a big moment”. He explained that “certain regulatory challenges being played out in Washington state” made the platform impossible to operate there. The platform aims to simplify sending and receiving funds and offers free and instant transactions on Bitcoin, MTL and XPR.
Traded at around $ 2, the MTL rose sharply after the news, rose above $ 7 and is currently trading at around $ 6.9.
However, Washington’s liking can also be taken as a positive signal for the initiative’s banking aspirations.
In February, Metal Pay applied to the Currency Supervisory Office (OCC) for a national bank regulation.
It’s not the first crypto startup to do this; Visa-backed digital asset platform Anchorage received the first federal regulation by the OCC in January, paving the way for the integration of crypto assets into the mainstream economy.
“There has never been a higher watermark than a federally authorized bank,” Diogo Monica, co-founder and president of Anchorage, told Decrypt at the time.
Crypto startups Paxos and BitPay have also submitted contract applications.
But Metal Pay plans to go further and submitted a first-of-its-kind application that will allow cash deposits to be insured by the Federal Deposit Insurance Corporation (FDIC). A decision is expected within three months.
We're thrilled to announce that we've earned a Money Transmitter License for the state of Washington.
People from Seattle to Spokane can now experience the Metal Pay difference!
Download Metal Pay today and see what you've been missing.https://t.co/6xsFaZjMAO
— Metal Pay (@metalpaysme) March 29, 2021
A successful outcome would take the new five-year-old company beyond the old golden age of September 2018, when MTL was valued at over $ 14. Metal Pay has chosen an impressive name for its initiative: “The First Blockchain Bank and Trust, N.A.”