Stablecoin clearing house Augustus clears hurdle to open national bank

Augustus, previously known as Ivy, has received conditional approval from the Federal Deposit Insurance Corp. for deposit insurance.

Augustus, which recently obtained similar clearance from the Office of the Comptroller of the Currency to form a national bank, is expected to become a clearing bank built on a stablecoin and an AI-native core.

The FDIC is requiring the bank to have nearly $73.7 million in initial capital.

Co-Founder Ferdinand Dabitz will serve as the bank’s CEO. Greg Quarles, former CEO of Green Dot Bank, will serve as president.

“Legacy banks are made of paper, Augustus is made of code,” Dabitz said in a press release following the OCC approval. “It’s obvious we need to upgrade clearing to the AI era. But only this unique regulatory moment at the intersection of US financial regulatory innovation, the Genius Act, and AI enables us to finally do so.”