OCC Gives Augustus Conditional Approval to Build AI-Native Clearing Bank in the US

"OCC conditionally approved Augustus Bank N.A. this week, making it the first AI-native stablecoin clearing bank to reach this stage in the U.S. Ferdinand Dabitz, 25, a Thiel Fellow, will become the youngest CEO of a federally chartered U.S. bank in 140 years if the charter receives full approval. Augustus said it processed billions with 10x year-over-year growth in 2024, serving clients including Kraken, whose own OCC trust charter application faces ICBA opposition. The New York-based company, formerly known as Ivy, announced the conditional approval on May 11."

"Augustus Bank, N.A. will target global financial institutions that require always-on, programmable settlement of major Western currencies. The release explains that the company's thesis centers on a specific gap in the existing model. The legacy correspondent clearing system closes roughly 115 days per year, runs on a two-day settlement cycle, and was built before programmable money existed. Co-founder Ferdinand Dabitz, 25, will serve as CEO of Augustus Bank, N.A."

"If the charter reaches full approval, Dabitz would become the youngest CEO of a federally chartered U.S. bank in at least 140 years. He is also a Thiel Fellow. Greg Quarles will serve as president. Quarles spent 18 years at the OCC as a commissioned national bank examiner and assistant deputy comptroller before serving as CEO of Green Dot Bank, United Texas Bank, and H&R Block Bank."

"The broader executive team includes Joe Schenone as CFO, who held prior roles at JPMorgan Chase and MUFG and is credited with helping convert both Lendingclub and Smartbiz into chartered banks. Andy Riggs, named chief credit officer, was on the founding team of Brex's asset management business. Kyle Steed will serve as chief risk officer after most recently holding an interim CRO role at United Texas Bank. Bruce Wallace, with prior board and advisory experience at Brex and Revolut, joins the bank's board."

OCC conditionally approved Augustus Bank N.A., making it the first AI-native stablecoin clearing bank to reach that stage in the U.S. Augustus, formerly known as Ivy, announced the conditional approval on May 11. The bank plans to target global financial institutions needing always-on, programmable settlement of major Western currencies. Augustus reported processing billions with 10x year-over-year growth in 2024 and serving clients including Kraken. The bank’s thesis centers on a gap in legacy correspondent clearing systems, which close about 115 days per year and operate on a two-day settlement cycle built before programmable money existed. Ferdinand Dabitz, 25, a Thiel Fellow, will become CEO if the charter receives full approval, potentially making him the youngest federally chartered U.S. bank CEO in at least 140 years. Greg Quarles will serve as president, with additional leadership roles including Joe Schenone as CFO and Andy Riggs as chief credit officer.

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