Old Glory Bank Sets Q1 2027 Crypto Launch After Fed Review Stalls

Old Glory Bank has set the first quarter of 2027 as the launch window for its NextGen banking platform, the timetable the Oklahoma lender disclosed after a proposed merger failed to supply the financing its crypto rollout depends on.

The gap is not liquidity, at least on the bank's own account. In a Nov. 12 post on X, the bank said it was approximately 90% liquid, with assets held in floating-rate agency bonds, and put total assets at $280 million against roughly $20 million in loans.

"We are absolutely doing one more large capital transaction before we launch NextGen banking," the bank wrote, saying the money would fund the growth it expects from the service. It expects to obtain that capital elsewhere by year-end.

What did the Federal Reserve ask about the merger?

CEO Mike Ring's August letter to the Federal Reserve describes the failed transaction as a business combination with Digital Asset Acquisition Corp., a special purpose acquisition company. Ring says the bank sought conditional approval ahead of shareholder redemption and voting deadlines in July, and that the Fed's questions covered voting results, redemptions, money remaining in the acquisition company's trust and projected capital ratios after closing.

Ring argued that uncertainty over approval discouraged investors from keeping money in the transaction. The bank's subsequent public replies describe a replacement capital plan and a first-quarter 2027 launch target; they do not announce that replacement financing has closed.

What would NextGen actually do?

In its merger prospectus, Old Glory described a single dashboard showing checking and savings balances, loans, and holdings in customers' self-custodial wallets, including MetaMask. Customers could exchange dollars for a bank-issued payment stablecoin, and use a service called Freedom Offramp to convert accepted digital assets into dollars deposited into their accounts. Crypto-backed credit lines were part of the proposed offering.

The filing described the stablecoin as backed by cash and short-term U.S. Treasuries. Management's working reserve model was 20% cash and 80% Treasuries, though the bank had not settled the allocation.

Which assets, and what stays unanswered?

Old Glory's current NextGen FAQ lists HBAR and XDC as the initial supported assets, with XRP, Bitcoin and Stellar's XLM following. Questions about XRP rails, PulseChain support, and wallet or trading fees remain labeled "answer TBD." The FAQ says customers can use conventional banking, crypto services or both, and gives no specific launch day or a schedule for the later asset additions.

What does the 2024 consent order require?

Regulatory records show Old Glory agreed to a consent order with the FDIC and the Oklahoma State Banking Department on May 1, 2024, without admitting or denying the alleged unsafe practices and legal violations. It requires a Tier 1 leverage capital ratio of 14% of average total assets, a written capital plan and stronger board supervision.

Changes involving new products, business lines or proposed business relationships require advance approval from both regulators. Independent IT audits, cybersecurity improvements and quarterly compliance progress reports were also required. The FDIC is the bank's appropriate federal banking agency; Oklahoma's banking department is its state regulator.

How do other U.S. crypto banking plans compare?

• Revolut received conditional U.S. bank approval in September, with a $95 million initial capital contribution planned and an opening targeted for 2027. FDIC, Federal Reserve and final OCC approvals remain necessary before it opens.
• OpenReserve's proposed full-service bank received preliminary OCC approval on Sept. 2, conditioned on at least $210 million in initial paid-in capital, deposit insurance and a preopening examination covering governance, compliance and technology.
• Coinbase announced full trust bank approval on Nov. 9 for its institutional custody business. The charter excludes ordinary retail deposits, traditional lending and direct stablecoin issuance, and requires at least $60 million in Tier 1 capital.

The binding constraint on Old Glory's 2027 target is capital and approval, not the asset list. Watch the year-end raise: if it closes and the Fed clears the replacement structure, the first-quarter launch stays live, and until it does, the consent order's 14% leverage floor means every new crypto product still needs sign-off from the FDIC and Oklahoma regulators.