• Prime Trust, a digital-asset custodian, will stop doing business in the U.S. state of Texas effective Jan. 31.
• The company provides custody and other services to key players in the crypto industry such as Swan, Abra and Okcoin.
• Prime Trust withdrew its Texas Money Transmitter License (MTL) application and intends to reapply “swiftly.”
Prime Trust, a digital-asset custodian, has announced that it will cease operations in the U.S. state of Texas at the end of January. The company provides custody and other services to key players in the crypto industry such as Swan, Abra and Okcoin.
In a notice posted on its website, Prime Trust informed affected customers on December 30th that it had withdrawn its Texas Money Transmitter License (MTL) application. Michelle Marin, Senior Vice President of Communications at Prime Trust, stated that the company informed customers not based in Texas on January 23rd in an effort to be transparent. She said, “We continually renew applications, and this is a part of the process. We intend to swiftly reapply and resume business in Texas.”
Public records show that Prime Trust was fined a total of $29,850 by the Banking Commissioner of Texas last year for conducting money transmission activities without a license. When asked for clarification on this, Marin said that the company “chose to accept the Administrative Penalty Agreement to resolve the matter, which was in the best interests of our customers.”
Prime Trust, which is registered in Nevada, provides both custodial and non-custodial services for digital assets and fiat currency to exchanges, broker-dealers, funds and other financial institutions. The company was founded in 2018 and has offices in Las Vegas, NV, San Francisco, CA, and Tokyo, Japan.
Prime Trust’s mission is to make it easier for businesses to accept digital assets and to provide a secure platform to store them. The company also seeks to make it easier for companies to comply with anti-money laundering regulations, know-your-customer requirements, and other compliance measures.
With the withdrawal of its Texas Money Transmitter License application, Prime Trust will not be able to service customers in the state of Texas. However, the company intends to reapply “swiftly” in an effort to resume operations in the state. Customers are encouraged to contact Prime Trust with any questions or concerns.