The price of TEL, the native token of Telcoin, is skyrocketing following news of the approval of the Telcoin Digital Asset Depository Bank Charter by the Nebraska Department of Banking and Finance.
With Telcoin becoming the first Digital Asset Depository Bank Charter in the USA, it sets a precedent for how digital assets can integrate with and operate within the traditional financial ecosystem.
Telcoin Digital Asset Depository Bank Charter approval
The approval under Nebraska’s Financial Innovation Act grants Telcoin the authority to issue stablecoins, referred to as “digital dollar” or the eUSD, and manage customer deposits under FDIC insurance.
This move aligns with the current US administration’s preference for regulated stablecoins over CBDCs, positioning Telcoin advantageously in the financial landscape.
With the approval, Telcoin jumps ahead of its competitor, Ripple Labs, which has faced headwinds with the US SEC, although there is some optimism with the return of Donald Trump to the white house.
While Ripple chose CBDCs and traditional banks, Telcoin chose regulated stablecoins and a digital asset bank model.
Although US President Donald Trump is pro-crypto, it is a fact that he is against CBDCs and supports regulated stablecoin, giving Telcoin an upper hand simply by the path it chose to follow.
Telcoin (TEL) price surge
The approval of the Telcoin Digital Asset Depository Bank Charter sets the stage for the TEL token to appreciate as its peer, XRP, which has done pretty well over the years despite facing legal challenges.
The immediate effect of the regulatory nod has been a 31.3% price hike in TEL within the last 24 hours, with the token now trading at $0.006694.
Over the past month, TEL has seen a 5.4% increase, but the yearly growth is an astounding 480.9%.
This surge reflects the market’s enthusiasm and confidence in Telcoin’s new direction.
Despite the surge following the charter approval news, TEL is currently far from its all-time high of $0.06448, suggesting there might be significant room for further appreciation.
Amid the heightened activity around the token following the regulatory nod, the market cap of TEL has now reached $521,010,349, with a 24-hour trading volume close to $15 million, indicating robust market activity and interest.
Analysts are very optimistic about the future of TEL, particularly given Telcoin’s unique position as the only regulated digital assets bank in the US.
Some market experts predict that TEL could hit $1 in the near future, buoyed by this regulatory approval and the potential for wider adoption of digital assets in mainstream finance.
Notably, the charter’s conditions, which include maintaining liquidity equal to 100% of issued stablecoins, stringent insurance requirements, and community engagement through financial education, are seen as stabilizing factors that could further drive investor confidence.
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