National Bank

Definition ∞ A national bank is a financial institution chartered and supervised by a national government, operating under federal statutes and regulations. These banks traditionally provide a range of financial services, including deposits, loans, and payment processing. In the evolving digital asset landscape, national banks are increasingly evaluating or pursuing opportunities to offer cryptocurrency-related services. Their participation can introduce stability and regulatory compliance to the sector.
Context ∞ The potential for national banks to custody digital assets or facilitate blockchain-based transactions is a frequent subject in financial and cryptocurrency news. Regulatory bodies continue to issue guidance on permissible activities, sparking discussions about the integration of digital assets into traditional finance. The extent of national bank involvement will significantly impact the mainstream adoption of cryptocurrencies and the future structure of the digital asset market.