FairX had hoped to be something that the cryptocurrency industry wanted– a bank serving the digital asset community. However, after spending over a year trying to launch, it has shut down its operations. It wasn’t able to receive the funding it needed to be classified by the U.S. Federal Deposit Insurance Corporation (FDIC) as a financial institution. The company confirmed the news with the help of a series of tweets.

According to the tweets, FairX was “on a tear” for the past 14 months. They were trying to get the required financial backing to gain a banking license from the Federal Deposit Insurance Corporation (FDIC). The firm was operating a crypto trading platform and had a major business goal of establishing a new national bank. This bank’s intentions were to provide a “dematerialized deposit” to crypto traders. It would have been similar to a USD-pegged stablecoin, with some key differences. The firm claims that most stablecoins are “doomed for failure”. This is because the reserves backing them were not secure, and their issuers aren’t sufficiently liable for their customers’ cash deposits.

The crypto firm was successful in introducing the idea of KYC/AML rules to the regulators. It soon realized that it requires capital. In June, it became clear the company wasn’t going to raise sufficient capital. Thus, the FairX team called it quits.