How a Marshall Islands DAO LLC Opens a US Bank Account
See how MIDAO-registered DAO LLCs open compliant US and international bank accounts, and what banking partners look for.
A common question we hear at MIDAO is: "With a Marshall Islands DAO LLC, can we open a bank account?" The answer is yes. DAO LLCs are Marshall Islands companies, and Marshall Islands companies bank all over the world. What's different for DAOs is the underwriting: banks and fintechs treat crypto-native organizations as a higher-risk category, so a DAO LLC needs the same documentation a traditional company would provide, plus a clear picture of how the DAO operates.
Key takeaways
- Banking partners evaluate DAO LLCs against a standard checklist covering formation documents, beneficial-ownership information, and a description of the organization's activities.
- Bank approval isn't guaranteed for every DAO and depends on factors such as membership structure and where beneficial owners are based.
- MIDAO recommends applying to more than one banking provider at once rather than waiting on a single answer.
- Signature Bank approved Admiralty LLC, the DAO that governs Clipper Exchange, for a bank account in 2022, one of the earliest recorded DAO approvals.
- Banks and fintechs treat crypto-native organizations as a higher-risk category, requiring the same documentation a traditional company would provide.
What banks and fintechs ask for
Banking partners evaluate DAO LLCs against a standard checklist: formation documents (Certificate of Formation and Operating Agreement), beneficial-ownership information, and a description of the organization's activities and source of funds. Approval isn't guaranteed for every DAO, and it depends on factors like membership structure and where beneficial owners are based. MIDAO recommends applying to more than one provider at once rather than waiting on a single answer.
Where MIDAO DAO LLCs bank today
MIDAO has partnered with a number of crypto-friendly banks and fintechs, covering everything from stablecoin-powered checking accounts to multi-currency fiat rails. The current, full list lives in MIDAO's Recommended Banks and Fintechs reference. If you'd like an introduction to any of MIDAO's banking partners, contact [email protected].
A dated first: Admiralty LLC and Signature Bank
In 2022, MIDAO announced that Admiralty LLC, the DAO that governs Clipper Exchange and one of the first Marshall Islands DAOs, had been approved for a bank account at Signature Bank in New York City, alongside Mercury's approval for Cougar DAO. Signature Bank has since closed; the milestone stands as one of the earliest recorded DAO bank-account approvals, not as a bank MIDAO can route customers to today.
Ready to see if your DAO qualifies for a bank account? Reserve your DAO LLC to get started.