Crypto Custodian Prime Trust to Cease Operations in Texas at End of January
The firm withdrew its Texas Money Transmitter License application but says it intends to reapply "swiftly."
Prime Trust, a digital-asset custodian, will stop doing business in the U.S. state of Texas effective Jan. 31, according to a notice posted on its website.
Prime Trust notified in affected customers on Dec. 30 that it withdrew its Texas Money Transmitter License (MTL) application, according to Michelle Marin, senior vice president of communications at Prime Trust. The company informed customers not based in Texas on Jan. 23 in an effort to be transparent, Marin said.
“We continually renew applications, and this is a part of the process,” Marin said. “We intend to swiftly reapply and resume business in Texas.”
Public records show Prime Trust was fined $29,850 by the Banking Commissioner of Texas last year for conducting money transmission activities in the state without a license.
CoinDesk requested clarification for why Prime Trust withdrew its MTL application but the firm declined to comment further.
According to Prime Trust's notice, users who try to open a new account from Texas will receive an error message, and further contributions to accounts in the state are blocked. Disbursements are not blocked, and the company says it will work with customers to close down accounts.
CORRECTION (20:21 UTC): This story has been corrected to show that affected customers were notified on Dec. 30. A previous version of the story noted that customers were notified earlier this week, which is when the notice was posted on the website.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.