Bordier & Cie clients will be able to buy, hold and trade digital assets such as bitcoin, ethereum, bitcoin cash and tezos.
Banks had feared being drained of liquidity under the original concept for the digital currency.
By digitizing the normally paper process, the Lygos joint venture says it's shown it can speed up bank guarantee issuances.
Also: Ether is jumping off, taking DeFi tokens with it.
Cryptocurrencies need to overcome a number of hurdles first, though, according to a research note.
"Every tether is backed by a reserve and their reserve is more than what is in circulation," said Gregory Pepin, Deltec Bank's deputy CEO.
The majority of the new deposits came from cryptocurrency exchange clients.
The trader operating a registered digital currency exchange, says he is unable to continue operating without banking services.
The price of bitcoin and native tokens for other stablecoin-supporting blockchains jumped after the OCC approved banks to use public blockchains.
Banks can act as nodes on a blockchain or conduct payments using stablecoins, the OCC said Monday.
FV Bank says it has received permission from a Puerto Rico banking regulator to provide custody services for bitcoin, ether and more in the U.S.
Bankhaus von der Heydt partnered with Bitbond to launch its euro-backed stablecoin on Stellar last week.
The OCC's head economist said in a paper that chartering stablecoin providers would offer benefits to consumers as well as to the firms themselves.
Indian banks have started doing business with select cryptocurrency exchanges and their customers, CoinDesk has confirmed.
The DBS Digital Exchange is 10% owned by Singapore's SGX stock exchange.